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:

Balance Sheet Insurance Asset Using Insurance Expense Using
Accrual Cash Accural Cash
Basis Basis Basis Basis
Dec. 31,2003 $ $ 2003 $ $
Dec. 31,2004 2004
Dec. 31,2005 2005
Dec. 31,2006 2006
Total $ $

For cash basis you only record the transaction when the transaction involves cash, therefore you have only one transaction.

2003
Mar 1, Debit Insurance Expense for the amount and Credit Cash for the amount.

For Accrual basis you have journal entries for every year.

2003
Mar 1, Debit Prepaid Insurance for the amount and Credit Cash for the amount

Dec 31, you need to calculate the amount of insurance used during the period. The amount paid / 36 months * 10 months of use.
Debit Insurance Expense for the amount and Credit Prepaid Insurance for the amount.

For the other iyears you need to calculte the amount of insurance used during the period. Your journal entries will be the same as the 31 Dec 2003 entry above, except with different amounts.

2004 and 2005 will be for 12 months

2006 will be for 2 months