Answer:
$4,500
Explanation:
For computing the amount, first we have to determine the monthly collection which is shown below:
= Premium collected ÷ total number of months in a year
= $18,000 ÷ 12 months
= $1,500
From April 1 to December 31, the company has earned the premium i.e for 9 months which equals to
= $1,500 × 9 months
= $13,500
Now the remaining 3 months would be reported as a current liability for Unearned insurance revenue
= $18,000 - $13,500
= $4,500
or
= $1,500 × 3 months
= $4,500
