| Computation of premium expense: 2014 | ||
| Cds =1320000/6 |
220,000.0 | |
| @2.40 220,000 x 2.40 |
528,000.0 | |
| Postage 220,000 *0.05 |
110,000.0 | |
| 638,000.0 | ||
| Less: Cash received— 220,000 *2.65 |
(583,000) | |
| Premium expense for CDs issued | 55,000 | |
| Computation of premium expense: 2015 | ||
| Cds | 275,000.0 | |
| @2.40 | 660,000.0 | |
| Postage | 137,500.0 | |
| 797,500.0 | ||
| Less: Cash received— | (728,750) | |
| Premium expense for CDs issued | 68,750 | |
| 2012 | 2013 | CLASIIFICATION | |||||
| Inventory of Premiums | 77,000 | 274,908 | Current Asset | ||||
| 660000-583000 | 77000+871200 -673292 |
||||||
| Premiums Liability | 13,292 | 16,042 | Current Laibility | ||||
| Premium Expense | 68,292 | 84,792 | Selling Expense | ||||
