On March 1, a Business Paid $3,600 for a Twelve

question 6

Essay

On March 1, a business paid $3,600 for a twelve month liability insurance policy. On April 1 the same business entered into a two-year rental contract for equipment at a total cost of $18,000. Determine the following amounts:

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Definitions:

Non-current Assets

Assets held for long-term use in business operations, not expected to be converted into cash within the next year.

Bonus Dividends

Additional dividends paid to shareholders, above regular dividends, typically issued in the form of extra shares.

Revaluation

An adjustment of the carrying value of an asset or liability to its current fair value.

Consolidated Statement

A financial statement that presents the financial position and results of operations of a parent and its subsidiaries as if they were a single economic entity.