4. A one-year insurance policy was purchased on August 1, 20-1 for $648. A. Calculate the...

Question

Question

Answer 1

Answer #1

Insurance expense for 1 year = $648

Insurance expense for 5 months of year 20-1 (August to December) = 648 x 5/12

= $270

Insurance expense for 7 months of year 20-2 (January to July) = 648 x 7/12

= $378

Prepaid insurance on Dec 31, year 20-1 = Insurance premium paid - Insurance expense for year 20-1

= 648 - 270

= $378

kindly give a positive rating if you are satisfied with the solution. do comment if you have any query, Thanks.

Answer 2

Similar Homework Help Questions

. Bland Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2003, and...

. Bland Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2003, and charged the $4,200 premium to Insurance expense. At its December 31, 2003, year-end, Bland Foods would record which of the following adjusting entries? A)Insurance expense 875 Prepaid insurance 875 B) Prepaid insurance 875 Insurance expense 875 C) Insurance expense 875 Prepaid insurance 3,325 Insurance payable 4,200 D)Prepaid insurance 3,325 Insurance expense 3,325
Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2021, and...

Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2021, and charged the $3,000 premium to Insurance expense. At its December 31, 2021, year-end, Yummy Foods Multiple Choice Prepaid insurance 2,375 Insurance expense 2,375 Prepaid insurance 625 Insurance expense 625 Insurance expense 625 Prepaid insurance 625 Insurance expense 625 Prepaid insurance 2,375 Insurance payable 3,000 would record which of the following adjusting entries?
on August 1, 2019 a firm purchased a one-year insurance policy for $3600 and paid the...

on August 1, 2019 a firm purchased a one-year insurance policy for $3600 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019 is ?

A one-year insurance policy was purchased on June 1 for $2,400. The adjusting entry on December...

A one-year insurance policy was purchased on June 1 for $2,400. The adjusting entry on December 31 would be: (If an amount box does not require an entry, leave it blank.) Dec. 31 Accounts Payable Cash Insurance Expense Insurance Payable Prepaid Insurance
3. A 36-month insurance policy was purchased on August 1 of the current year. The entire...

3. A 36-month insurance policy was purchased on August 1 of the current year. The entire cost of $14,400 was debited to an expense account on that date. Prepare the correcting journal entry as of December 31.
On August 1, 2019, a firm purchased a 1-year insurance policy for $5,700 and paid the...

On August 1, 2019, a firm purchased a 1-year insurance policy for $5,700 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is Multiple Choice $1,900. $5,700. $3,325. $2,375.

A two-year insurance policy for $5,280 was purchased on November 1 of the current year. Record...

A two-year insurance policy for $5,280 was purchased on November 1 of the current year. Record the transaction for the two months ended December 31 Adjustment Type: Insurance Expense Prepaid Insurance
Do question 1 only 5. For each of the following insurance policies perform the required calculations:...

Do question 1 only 5. For each of the following insurance policies perform the required calculations: A. Calculate the value of the prepaid insurance at the year-end date shown. B. Prepare the adjusting journal entry for the year end shown. Policy a. b. Oct. 1, 20-4 Dec. 31, 20-4 Purchase date Year-end date Term of policy Premium Oct. 1, 20-4 Dec. 31, 20-5 2 years $360 Oct. 1,20 4 Oct. 31,20-4 1 year $456 1 year $360 Policy d. Mar....
Tumbler, Inc. bought a 4-year insurance policy on August 1 for $3,700. Assume no other adjusting...

Tumbler, Inc. bought a 4-year insurance policy on August 1 for $3,700. Assume no other adjusting entries have been done this fiscal year. The adjusting entry on December 31 would be: O A. debit Prepaid Insurance, $77, credit Insurance Expense, $77 O B. debit Insurance Expense, $77, credit Prepaid Insurance, $77. O C. debit Prepaid Insurance, $385, credit Insurance Expense, $385. OD. debit Insurance Expense, $385; credit Prepaid Insurance, $385.

On July 1, 20x8, Hathaway Ltd. purchased a 4 year insurance policy and paid a premium...

On July 1, 20x8, Hathaway Ltd. purchased a 4 year insurance policy and paid a premium of $37570. Hathaway has a December 31 year end. Which of the following statements is true? of Select one: a. Under cash basis accounting, there will be a balance of $23481 in the Prepaid insurance account on December 31, 20x9 b. Under accrual accounting, there will be a balance of $32874 in the Prepaid insurance account on December 31, 20x8 c. Under cash basis...