ABC company records its adjusting entries at the end of every month. The following accounts were taken from the adjusting trial balance of ABC company at January 31, 2010:
Prepaid Insurance: 6000
Insurance Expense: 400
The insurance policy was a 2 year policy which purchased.
Calculate the number of months of the insurance policy that have been used up. Assume year end is December 31.

First you need to divide the Prepaid amount by 24 to get the monthly rate, then take the Expense amount and divide it by the monthly rate to get number of months of insurance used.