Accrual asset balance equals months left in the policy × $500 per month (monthly cost is computed as $18,000 / 36 months).
|
| Months Left | Balance | ||
| 12/31/2011 | 26 | $ | 13,000 |
| 12/31/2012 | 14 | 7,000 | |
| 12/31/2013 | 2 | 1,000 | |
| 12/31/2014 | 0 | 0 | |
| Accrual insurance expense equals months covered in the year × $500 per month. |
| Months Covered | Expense | ||
| 2011 | 10 | $ | 5,000 |
| 2012 | 12 | 6,000 | |
| 2013 | 12 | 6,000 | |
| 2014 | 2 | 1,000 | |
| $ | 18,000 | ||
Solartis Insure cloud based services support each process in the policy life cycle – either as modules to integrate with your existing technology or as an end-to-end solution.
ReplyDeleteinsurance policy lifecycle
How did you get 13,000 for accrual basis
ReplyDelete26 months left x $500
Deletemonths left x ($____ / months paid for)
Delete