Under Bart Company's accounting system,all insurance premiums paid are debited to prepaid insurance.For interim reports,Bart makes monthly estimated charges to insurance expense with credits to prepaid insurance.Additional information for the year ended December 31,2014 is as follows:
$\begin{array}{lc}
\text { Prepaid insurance at December 31, 2013 } & \$ 310,000 \
\text { Charges to insurance expense during 2014, including a year-end } & \
\quad \text { adjustment of } \$ 50,000 & 975,000 \
\text { Unexpired insurance premiums at December 31, 2014 } & 265,000
\end{array}$
Required:
What was the total amount of insurance premiums paid by Bart during 2014?

Question

Under Bart Company's accounting system,all insurance premiums paid are debited to prepaid insurance.For interim reports,Bart makes monthly estimated charges to insurance expense with credits to prepaid insurance.Additional information for the year ended December 31,2014 is as follows:
$\begin{array}{lc}
\text { Prepaid insurance at December 31, 2013 } & \$ 310,000 \
\text { Charges to insurance expense during 2014, including a year-end } & \
\quad \text { adjustment of } \$ 50,000 & 975,000 \
\text { Unexpired insurance premiums at December 31, 2014 } & 265,000
\end{array}$ 
Required:
What was the total amount of insurance premiums paid by Bart during 2014?

Quizplus · Accepted Answer

The Answer of Under Bart Company's accounting system,all insurance premiums paid are debited to prepaid insurance.For interim reports,Bart makes monthly estimated charges to insurance expense with credits to prepaid insurance.Additional information for the year ended December 31,2014 is as follows:
$\begin{array}{lc}
\text { Prepaid insurance at December 31, 2013 } & \$ 310,000 \
\text { Charges to insurance expense during 2014, including a year-end } & \
\quad \text { adjustment of } \$ 50,000 & 975,000 \
\text { Unexpired insurance premiums at December 31, 2014 } & 265,000
\end{array}$ 
Required:
What was the total amount of insurance premiums paid by Bart during 2014?

Under Bart Company's Accounting System,all Insurance Premiums Paid Are Debited