Question: A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2016. 1. Calculate the amount of prepaid insurance that should

A company makes the payment of a one-year insurance premium of $4,440 on March 1, 2016.

1. Calculate the amount of prepaid insurance that should be reported on the December 31, 2016 balance sheet with respect to this policy.

2. If the premium had been $8,880 for a two-year period, how should the prepaid amount at December 31, 2016 be reported on the balance sheet?

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