The solution for 6 is Prepaid Insurance 2009 + x - Insurance Expense 2010 = Prepaid Insurance 2010
But the solution for 14 is different: Prepaid Insurance 2013 - x + Amount Paid 2014 = Prepaid Insurance 2014
Why is X added in 6 and subtracted in 14?
Use the following information from Coombes Corporation's annual financial statements to answer questions 6 and 7:
| |
2009 |
2010 |
2011 |
2012 |
| Prepaid insurance |
$2,000 |
$1,200 |
$1,800 |
$1,650 |
| Insurance expense |
$24,000 |
$24,800 |
$25,100 |
$25,000 |
| Salaries payable |
$8,000 |
$1,000 |
$6,000 |
$9,000 |
| Salary expense |
$46,000 |
$49,000 |
$50,000 |
$52,000 |
How much did Coombes pay for insurance during 2010?
Goleta Company had the following information on its annual financial statements:
| |
2011 |
2012 |
2013 |
2014 |
| Prepaid insurance |
$1,400 |
$1,250 |
$1,300 |
$1,500 |
| Amount paid for insurance |
$16,500 |
$17,000 |
$17,500 |
$18,000 |
How much was insurance expense during 2014?