snowmist69
May 20, 2011, 07:00 PM
Here's a simple one and I'm sure I'm making it harder than it is. What is the amount of cash paid for insurance during 2010?
Prepaid Insurance for 2010 is $2,400 2009 it was $ 2,900
Insurance expense is $3,800 taken from the 2010 income statement
Do I subtract 2,400 from 3,800 to get my amount of cash
Do I add 2009 and 2010 together then subtract what's on the income statement to get my answer? If this is so I come up with$1,500:confused:
Prepaid Insurance for 2010 is $2,400 2009 it was $ 2,900
Insurance expense is $3,800 taken from the 2010 income statement
Do I subtract 2,400 from 3,800 to get my amount of cash
Do I add 2009 and 2010 together then subtract what's on the income statement to get my answer? If this is so I come up with$1,500:confused: