Kite Company paid $24,900 in insurance premiums during 2011. Kite showed $3,600 in prepaid insurance on its December 31, 2011, balance sheet and $4,500 on December 31, 2010. The insurance expense on the income statement for 2011 was

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The insurance expense for 2011 is calculated as follows: Starting prepaid insurance ($4,500) + Insurance premiums paid during 2011 ($24,900) - Ending prepaid insurance ($3,600) = $25,800.

Kite Company Paid $24,900 in Insurance Premiums During 2011