Kite Company paid $24,900 in insurance premiums during 2013.Kite showed $3,600 in prepaid insurance on its December 31,2013,balance sheet and $4,500 on December 31,2012.The insurance expense on the income statement for 2013 was

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The insurance expense for 2013 can be calculated by adding the premiums paid during the year to the beginning prepaid insurance balance, then subtracting the ending prepaid insurance balance. This gives us $24,900 (premiums paid) + $4,500 (beginning prepaid insurance) - $3,600 (ending prepaid insurance) = $25,800.

Kite Company Paid $24,900 in Insurance Premiums During 2013