Question

$ 7,850 300 $ 8,150 Revenues Consulting revenue .... Rental revenue ..... Total revenue ........... Expenses Depreciation expense-Equip ..... Salaries expense ....... Insurance expense ........ Rent expense ...... Supplies expense ............ Utilities expense ................ Cash ..... Accounts receivable ....... Supplies ......... Prepaid insurance .......... Equipment Less accumulated depreciation ........... Total assets .... Liabilities Accounts payable ........... Supplies payable .... ..... Uneamed consulting revenue .......... Total liabilities .... Equity Owner's Capital ........ $ 4,350 1,800 8,670 2,300 $ 26,000 375_25,625 $ 42,745 375 1,610 100 $ 6,200 210 1,000 1,050 230 2.750 9,160 Total expenses .......... Net Income ... 4,365 $ 3,785 33,585 303 0 1-24/1-24 1x CC Knowledge Check 01 Aurora Corporation operated without insurance coverage for the first month of 2019. Then, on February 1, 2019, the company paid the $4,800 premium on a two-year insurance policy with benefits beginning on that date. The company uses the accrual basis. How much insurance expense will be reported on the company's income statement for the year ended December 31, 2019? $200 $2,200 $4.600 $4,800 < Prev 4 5 6 of 6 Score answer > docx A to search o Ei e a à < a < 5 g

Answer 1

The Amount of premium paid on insurance is $4800 for two-year insurance pokey under accural system under ccruas system The amount paid for the year is included in this year, any Premium more is included as prepaid in the Balanced sheet paid insurance The Amount 4,800 for a4 months can be calcualted as 11 months, (since poud on Feb gst) on paid since Balancesheer In • Income statement Remainry amount in The Remainry amount 200 Since 24 months the $4800 x I total total Insurance Insurance par In of & 2200 Income Statement the amout a $2200 is included as Insurance expense

The the new as Balance remaining $2.600 for year should be included sheet Assets prepaid & Insurance 2600 & Answer= (b) = $2,200.