Response to the following problem:
The Jones Company debits prepaid insurance for insurance premiums paid. During the year insurance expense is computed for interim periods and insurance expense is debited and prepaid insurance is credited. Information for the year ended December 31, 2012 follows:
Prepaid Insurance December 31, 2011 $180,000
Insurance Expense $320,000
Prepaid Insurance December 31, 2012 $170,000
Required :
Determine the insurance premiums paid during 2012.