Can anyone tell me if this is correct and if not what I did wrong. Thank you
Exercise 3-7
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
Accrual Basis Cash Basis
Dec. 31, 2003 $_450.00____ $___0__
Dec. 31, 2004 _6,300.00 ___ ___0__
Dec. 31, 2005 _900.00_____ ___0___
Dec. 31, 2006 _____0__ ____0___
Insurance Expense Using
Accrual Basis Cash Basis
Dec. 31, 2003 $4,500.00__$_16,000______
Dec. 31, 2004 __5,400.00______ _______
Dec. 31, 2005 __5,400.00 ____ ___0____
Dec. 31, 2006 __900.00______ ___0____
Total $_16,200.00______ $_16,000__
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