ACCOUNTING help

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On March 1, 2003, a company paid a \$16,200 premium on a 36- month insurance policy for a coverage beginning on that date. Refer to that policy and fill in the blanks in the following table:

Balance Sheet Insurance Asset Using
Accrual Cash
Basis Basis
Dec, 31, 2003 \$_16,200 \$_0__

Dec. 31, 2004 \$__________ \$_______________

Dec. 31, 2005 \$__________ \$_______________

Dec 31, 2006 \$__________ \$_______________

Insurance Expense Using

Accrual Cash
Basis Basis
Dec, 31, 2003 \$_4500_ \$__0____

Dec. 31, 2004 \$ _5400____ \$___0____

Dec. 31, 2005 \$_5400 \$___0___

Dec 31, 2006 \$__________ \$________

• ACCOUNTING help -

to a month a mount covered is 16200:36=450 dollars

• ACCOUNTING help -

Check
2005 insurance expense: Accrual, \$5,400; Cash, \$0. Dec. 31, 2005,
asset: Accrual, \$900; Cash, \$0.

Balance Sheet Insurance Asset Using

Accrual Basis Cash Basis
Dec. 31, 2003 \$11,700 \$0
Dec. 31, 2004 \$ 6,300 0
Dec. 31, 2005 \$ 900 0
Dec. 31, 2006 \$ 0

Accrual Basis Cash Basis
2003 \$4,500 \$16,200
2004 5,400 0
2005 5,400 0
2006 900 0
Total \$ 16,200
========
Explanation

\$16,200 / 36 = \$450
Remaining
2003 26 months \$11,700
2004 14 6,300
2005 12 4,500
2006 12 4.500