If the balance sheet shows prepaid insurance of 480 , how do you determine how much is owe to insurance compan

Question

Balance Sheet
As of March 31, 2008

Total
ASSETS
Current Assets
Bank Accounts

Terry Dinh Service Corporation 6,197.00
Total Bank Accounts $6,197.00
Accounts Receivable
Accounts Receivable 0.00
Total Accounts Receivable $0.00
Other Current Assets
Prepaid Insurance 480.00
Total Other Current Assets $480.00
Total Current Assets $6,677.00
Fixed Assets
Computer Equipment
Accumulated Depreciation -2,400.00
Original Cost 6,000.00
Total Computer Equipment $3,600.00
Total Fixed Assets $3,600.00
TOTAL ASSETS $10,277.00
LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable 0.00
Total Accounts Payable $0.00
Total Current Liabilities $0.00
Total Liabilities $0.00
Equity
Common Stock 1,000.00
Dividends -5,000.00
Income Summary 0.00
Paid in Capital 7,000.00
Retained Earnings 2,532.00
Net Income 4,745.00
Total Equity $10,277.00
TOTAL LIABILITIES AND EQUITY $10,277.00

Answer 1

If Accounts Payable is 0, then you don't owe anything to the insurance company.