1st question
My comp paid 15000 to cover a 3 year insurance premium. One year has elapsed. I came up with 5000 for insurance expense incurred this year and 15000 is how much we paid for insurance this year. Is this correct?

2nd question
Accrued 20000 of salary expense at the end of year 1 then paid 30000 of salaries early in year 2. how much salary expense applies to year 1 and year 2 respectively? I said 30000 in year 1 and 0 in year 2. Am I correct?

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Originally Posted by dwatkins1025

1st question
my comp paid 15000 to cover a 3 year insurance premium. one year has elapsed. i came up with 5000 for insurance expense incurred this year and 15000 is how much we paid for insurance this year. is this correct?

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Correct.

Quote:

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Originally Posted by dwatkins1025

2nd question
accrued 20000 of salary expense at the end of year 1 then paid 30000 of salaries early in year 2. how much salary expense applies to year 1 and year 2 respectively?. i said 30000 in year 1 and 0 in year 2. Am I correct?

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At the end of Year 1, you owe $20,000

In Year 2, you pay $30,000. Therefore, you have paid off the Year 1 $20,000, which leaves $10,000 for Year 2

Year 1 = 20,000
Year 2 = 10,000