Your post is quite UNCLEAR.
What is the REAL question: the insurance expense for 2009?
Any help would be appreciated, and thank you in advance.
Coverage period is 11/12/2009 - 11/12/2010
Total cost= $43,098.33 (Quarterly $10,774.58 or Monthly $3,591.53)
on 11/12/2009 the beginning balance was 14,222.46.............ending balance $14,222.46
on 12/31/2009 the amortization is $8,021.10........................ending balance $6,201.36
Ok so my question is how is this $8,021.10 calculated as being amortized on 12/31/09. Because when I calculate it out it comes to $5,835.05?
Here is how I'm calculating it:
($43,098.33/365 days = $118.08 per day, therefore 19 days remainning in November = 19* 118.08 = $2,243.52)
2,243.52 November + $3,591.53 December = $5,835.05
Please help what am I doing incorrect? I know it's probably a simple math error I'm doing wrong somewhere. Thanks for your help in explaining.
Well, it's obvious that you're correct here:
(except 18 days remaining may be more accurate)
Here is how I'm calculating it:
($43,098.33/365 days = $118.08 per day, therefore 19 days remainning in November = 19* 118.08 = $2,243.52)
2,243.52 November + $3,591.53 December = $5,835.05
On this weird stuff:
on 11/12/2009 the beginning balance was 14,222.46.............ending balance $14,222.46
on 12/31/2009 the amortization is $8,021.10........................ending balance $6,201.36
HOW do you know that your calculation has to end up at $8,021.10?
Isn't that 8,021.10 the amortization for FULL year?
WHAT is the 14,222.46; must it be used somehow?
IF year ends at 6,201.36 and 5,835.05 is applicable to the Nov.12
prepaid premium, then there is 6201.36 - 5835.05 = 366.31 that is
applicable to prior to Nov.12........
Have you posted the FULL ORIGINAL problem?