The income statement of Dolan Corporation for 2012 included the following items: Interest revenue $131,000
Salaries and wages expense 170,000
Insurance expense 15,200
The following balances have been excerpted from Dolan Corporation's balance sheets:
December 31, 2012 December 31, 2011
Interest receivable $18,200 $15,000
Salaries and wages payable 17,800 8,400
Prepaid insurance 2,200 3,000
The cash paid for insurance premiums during 2012 was:
A) $13,000.
B) $12,200.
C) $16,000.
D) $14,400.

C) $16,000.

Explanation:

cash paid for insurance premiums = total insurance expense + ending balance of prepaid insurance - beginning balance of prepaid insurance

cash paid for insurance premiums = $15,200 + $3,000 - $2,200 = $16,000

Generally when you purchase an insurance policy you can either pay every month or pay for several months in advance and get a discount. When you pay for several months in advance, you must debit prepaid insurance. Then as time passes, you must accrue insurance expense. For e.g. you pay $2,400 today for a 1 year insurance premium, and at the end of the month you will accrue $200 of insurance expense. But your cash payment was made today.

its bc they probably don't know your answer to the real question but want points from your dumb ones.

answer; (a) conduct a worksite inspection;