4. The coverage period for the liability insurance policy is from April 1 through March 31. A premium payment of $36,000 for the policy period beginning April 1, 2013, was made in March of 2013 and...

4. The coverage period for the liability insurance policy is from April 1 through March 31. A premium payment of $36,000 for the policy period beginning April 1, 2013, was made in March of 2013 and recorded as prepaid insurance. At the end of 2013, the recorded prepaid insurance balance was $15,000. The policy premium of $39,600 of the policy period beginning April 1, 2014, was paid in March of 2014. At the end of 2014, the recorded balance in the prepaid insurance account was $19,200.