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Eve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective that date. The liability policy was $52,200 for 18 months, and the crop damage policy was $26,400 for a two-year term. What was the balance in Eve's Prepaid Insurance account as of December 31, 2021

Respuesta :

Tundexi

Answer:

$20,600

Explanation:

Computation of prepaid insurance

Insurance 1 ($52,200 * 6/18)              $17,400

Insurance 2 ($26,400 * 12/24)           $13,200

Total Prepaid Insurance                    $20,600