A doctor's office paid $18,000 on insurance for a full year. What will be the balance of the prepaid expense after 8 months?
To find the balance of the prepaid expense after 8 months, we first need to calculate the monthly expense.
To do this, divide the total amount paid for a full year by the number of months in a year:
$18,000 / 12 months = $1,500 per month
Now, we can calculate the balance after 8 months. Multiply the monthly expense by the number of months passed:
$1,500 * 8 months = $12,000
Therefore, the balance of the prepaid expense after 8 months would be $12,000.