1. ## prepaid insurance/amortization Quest.

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. 2. Your post is quite UNCLEAR. What is the REAL question: the insurance expense for 2009? 3. the question I'm asking is how the$8021.10 amortization was calculated on 12/31/09?

It's pro-rated calculated, however I'm unsure why my calculations is not adding up the same...

4. Originally Posted by helpme7
the question I'm asking is how the $8021.10 amortization was calculated on 12/31/09? It's pro-rated calculated, however I'm unsure why my calculations is not adding up the same... 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?