on April 1 a business paid 7,200 for liability and fire insurance for the fiscal year then beginning.?
December 13th, 2010
Question by somegirl: on April 1 a business paid 7,200 for liability and fire insurance for the fiscal year then beginning.?
Also on April 1 the same business entered into a rental contract for equipment for 12,000 annually, payable every three months beginning July 1. Determine the following amounts: 1)prepaid insurance as of April 30, b)accrued rent payable as of April 30, and c)total insurance and rent expense for April
Best answer:
Answer by baby_girl123451
1) Prepaid Insurance as of April 30 is $ 6,600 (7,200/12months = $ 600 per month then $ 7,200 – $ 600)
b) no sure sorry
c) Insurance Expense for April is $ 600; Rent expense is $ 4,000 ($ 12,000/12 months)
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