An analysis of the company's insurance policies provided the following facts.
| Policy |
Date of Purchase |
Months of Coverage |
Cost |
| A |
April 1, 2013 |
24 |
$ |
14,400 |
| B |
April 1, 2014 |
36 |
|
12,960 |
| C |
August 1, 2015 |
12 |
|
2,400 |
The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)