The Following Are Relevant Account Balances from Winthrop Company's Comparative

question 45

Essay

The following are relevant account balances from Winthrop Company's comparative balance sheet and 2017 income statement.
$$\begin{array} { | l | c | r | } \hline & \text { December } 31,2017 & \text { January } 1,2017 \\\hline \text { Accounts receivable } & \$ 15,000 & \$ 19,000 \\\text { Prepaidinsurance } & 5,000 &3 , 0 0 0 \\\text { Unearned revenue } & 8 , 0 0 0 & 11,000 \\\text { Salaries payable } & 9 , 0 0 0& 5 , 0 0 0 \end{array}$$
Winthrop's 2017 income statement includes the following:
$\begin{array}{lr}\text { Sales revenue } & \$ 89,000 \\\text { Insurance expense } & 4,000 \\\text { Salaries expense } & 31,000\end{array}$

Determine the amount of cash paid for insurance during 2017.

---

Definitions:

Kennel Owner

An individual who owns or operates a facility where dogs are housed, cared for, and sometimes bred.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, foreign bodies, or excessive wind.

Headache Medicine

Medication specifically designed to relieve symptoms of headaches, including tension and migraine types.

Injunctions

Legal orders issued by a court requiring a person or entity to do or cease doing a specific action.