Question

On March 1, 2003, a company paid a $16,200 premium on a 36-month insurance policy for coverage
beginning on that date. Refer to that policy and fill in the blanks in the following table:
Check 2005 insurance expense:
Accrual, $5,400; Cash, $0. Dec. 31, 2005,
asset: Accrual, $900; Cash, $0.
Balance Sheet Insurance Asset Using Insurance Expense Using
Accrual Cash Accrual Cash
Basis Basis Basis Basis
Dec. 31, 2003 $_______ $_______ 2003 $_______ $_______
Dec. 31, 2004 _______ _______ 2004 _______ _______
Dec. 31, 2005 _______ _______ 2005 _______ _______
Dec. 31, 2006 _______ _______ 2006 _______ _______
Total $_______ $_______



For Insurance expense I have
accrual basis Cash basis
4500 16200
5400 0
5400 0
900 0
Can some one pleas help with the insurance asset part thank you

Answer 1

Balance Sheet Insurance Asset Using Insurance Expense Using
Accrual Cash Accrual Cash
Basis Basis Basis Basis
Dec. 31, 2003 $16,200 $0 2003 $0 $16,200
Dec. 31, 2004 $13,800 $0 2004 $4,400 $0
Dec. 31, 2005 $9,900 $0 2005 $5,400 $0
Dec. 31, 2006 $4,500 $0 2006 $5,400 $0
Total $16,200 $0