When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance. Additional information for the year ended December 31 is as follows: What was the total amount of cash paid by Castle for insurance premiums during the year?

Question

When Castle Corporation pays insurance premiums, the transaction is recorded as a debit to prepaid insurance. Additional information for the year ended December 31 is as follows:  What was the total amount of cash paid by Castle for insurance premiums during the year?

Quizplus · Accepted Answer

11ea937b_3669_b892_a419_5da2dd45c35a_TB2599_00 Cash paid for insurance = $218,750 - $52,500 + $ 61,250 = $ 227,500

When Castle Corporation Pays Insurance Premiums, the Transaction Is Recorded