Arnez Company’s annual accounting period ends on December 31, 2017 The following information concerns the adjusting entries to be recorded as of that date
Record the adjusting entry related to the company’s insurance
An analysis of the company’s insurance policies provided the following facts
Policy Date of Purchase Months of Coverage Cost
A April 1, 2015 24 months $11,400
B April 1, 2016 36months 10,224
C August 1, 201712 months 9,000
The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years)
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