Question

On July 1, a company paid the $3,360 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31

Answer 1

Answer:

$1,680

Explanation:

Based On the information given if on July 1 the company paid the amount of $3360 as a premium on a year insurance policy which as well include benefits beginning on that date, What will be the insurance expenses on the annual income statement for the first year ended December is $1,680 Calculated as:

Insurance expenses=6/12*$3360

Insurance expenses=$1,680

Therefore What will be the insurance expenses on the annual income statement for the first year ended December is $1,680