Under Hart Company's accounting system, all insurance premiums paid are debited to Prepaid insurance. For interim financial
Question:
Under Hart Company's accounting system, all insurance premiums paid are debited to Prepaid insurance. For interim financial reports, Hart makes monthly estimated charges to Insurance expense with credits to Prepaid insurance. Additional information for the year ended December 31, 2017, follows:
Prepaid insurance at December 31, 2016.......................................................................................$210,000
Charges to Insurance expense during 2017, including a year-end adjustment of $35,000........875,000
Prepaid insurance at December 31, 2017..........................................................................................245,000
Required:
What was the total amount of insurance premiums Hart paid during 2017?
Step by Step Answer:
The amount of premiums paid can be determined from ...View the full answer
Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
