On March 1, a business paid $3,600 for a twelve-month liability insurance policy. On April 1, the business entered into a two-year rental contract for equipment at a total cost of $18,000. Determine the following amounts:

(a) insurance expense for the month of March
(b) balance in prepaid insurance as of March 31
(c) equipment rent expense for the month of April
(d) balance in prepaid equipment rental as of April 30

Question

On March 1, a business paid $3,600 for a twelve-month liability insurance policy. On April 1, the business entered into a two-year rental contract for equipment at a total cost of $18,000. Determine the following amounts:
​
(a) insurance expense for the month of March
(b) balance in prepaid insurance as of March 31
(c) equipment rent expense for the month of April
(d) balance in prepaid equipment rental as of April 30

Quizplus · Accepted Answer

The Answer of On March 1, a business paid $3,600 for a twelve-month liability insurance policy. On April 1, the business entered into a two-year rental contract for equipment at a total cost of $18,000. Determine the following amounts:
​
(a) insurance expense for the month of March
(b) balance in prepaid insurance as of March 31
(c) equipment rent expense for the month of April
(d) balance in prepaid equipment rental as of April 30

On March 1, a Business Paid $3,600 for a Twelve-Month