I have just started at an accrual based company and was wondering if anyone can help on how to record our yearly insurance premimum which is paid via finance. I imagine i will create the new liability for the insurance loan, and allocate the monthly payments to that, but I am unsure of the journal side of things. Breakdown is as below
Motor Vehicle Insurance - $8735
Premium - $7101.73
GST 730.19
Stamp Duty $703.08
Broker Fee - $200
Business Insurance - $5080
Premium - $4038.13
GST $428.04
Stamp Duty - $371.56
Broker Fee - $242.27
Professional Indemnity - $1610
Premium - $1250
GST $135.11
Stamp Duty $123.75
Broker Fee - $101.14
Public Liability $6035
Premium - $4880
GST $508.14
Stamp Duty $445.50
Broker Fee $201.36
Finance details below
Flat Interest Rate 7.35%
Administration Fee $60.00
Number of Instalments 10
First Monthly Instalment $2,363.66
Remaining 9 Instalments $2,303.66
