Eve's apples opened its business on january 1, 2018, and paid for two insurance policies effective that date. The liability poli

Question

3 years ago

6

Eve's apples opened its business on january 1, 2018, and paid for two insurance policies effective that date. The liability poli

cy was $34,200 for 18 months, and the crop damage policy was $14,700 for a two-year term. What is the balance in eve's prepaid insurance as of december 31, 2018

Business

1 answer:

Effectus [21] · Answer 1 · 2022-04-17T00:29:26+03:00

Answer:

Balance in Prepaid insurance as of December 31 is $18,750

Explanation:

 Computation of Prepaid Insurance

Insurance 1 ($34,200 * 6/18) $11,400

Insurance 2 ($14,700 * 12/24) $7,350

Total Prepaid Insurance $18,750