A seller prepaid their annual insurance premium of $2,100 on January 1 and the closing is...
A seller prepaid their annual insurance premium of $2,100 on January 1 and the closing is set for March 15, using the 12-month/30-day method, if the buyer pays for the day of closing, what will the buyer owe the seller as prorated insurance?
$431.66
$437.26
$1,668.33
$1,680.00
Please explain answer!!
Homework Answers
| Correct option is: $437.26 | |||
| Workings: | |||
| Number of days | |||
| January | = | 30 | days |
| February | = | 30 | days |
| March | = | 15 | days |
| Total | = | 75 | days |
| Total prepaid insurance | = | $ 2,100 | |
| Prorated Insurance amount | = | ($2100 / 360 days) X 75 days | |
| = | $ 437.25 | ||
Add Answer to:
A seller prepaid their annual insurance premium of $2,100 on
January 1 and the closing is...
On January 15, a seller paid $960 in annual property tax for the current calendar year....
On January 15, a seller paid $960 in annual property tax for the current calendar year. A buyer is purchasing the house with the closing set for March 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month.
On February 1, a seller paid $1,140 in annual property tax for the current calendar year....
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house wiith the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month. Your answer! Correct answer: $288 A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points....
Sellers Greg and Joyce’s real estate taxes for the year are $1850. The closing is set...
Sellers Greg and Joyce’s real estate taxes for the year are $1850. The closing is set for May 12. Using the 365-day method, and the seller paying for the day of closing, which statement is true? Credit the seller $1,850; debit the buyer $1,850 Credit the seller $668.98; debit the buyer $668.98 Credit the buyer $1,054.14; debit the seller $1,054.14 Credit the buyer $668.98; debit the seller $668.98 Please explain answer !!!
Complete the simplified settlement statement form (Excel spreadsheet provided) for the transaction described below. The various...
Complete the simplified settlement statement form (Excel spreadsheet provided) for the transaction described below. The various closing costs will be allocated between the parties in the customary way unless otherwise noted. Use a 360-day year and 30-day months for your prorations. Round dollar amounts to two decimal places for each step in your calculations. (Digits from 1 through 4 should be rounded down; digits from 5 through 9 should be rounded up.) The house at 314 Baker Street...
What are the prorated real estate taxes to be charged to the buyer? For this question,...
What are the prorated real estate taxes to be charged to
the buyer?
For this question, prorate using the actual number of days in the month and year. Split the escrow fee 50-50. The seller will pay the revenue stamps, and the buyer will pay title insurance and the recording fee. The buyer assumes the existing mortgage balance of $127,042.42, the buyer will pay in cash at closing the difference between the purchase price and the loan balance, and the...
$7,200 2,100 7,680 Prepaid insurance Supplies Office equipment Unearned rent revenue Salaries expense Rent revenue 5,400...
$7,200 2,100 7,680 Prepaid insurance Supplies Office equipment Unearned rent revenue Salaries expense Rent revenue 5,400 3,250 16,000 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $975 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Briggs Corp. purchases a 24-month property insurance policy for...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Briggs Corp. purchases a 24-month property insurance policy for $72,000. The policy is effective immediately. Assume that Briggs prepares adjustments only once a year, on December 31 Required: 1. Compute the monthly cost of the insurance policy $3,00 per month Consider the number of months covered by the annual premium 2. Identify and analyze the transaction to record the purchase of the policy on Apr Activity Operating Accounts Prepaid Thurance Increase, Cash Decrease...
if a firm has prepaid the insurance premium of $1200 in May for the whole upcoming...
if a firm has prepaid the insurance premium of $1200 in May for the whole upcoming year, then in June of the same month the CASH FLOW statement should have ... 1. Operating cash increased (+ $200) 2. Operating cash decreased (- $200) 3. Operating cash increased by X (+ $X) .. How much X ? 4. Operating cash decreased by Y (- $Y) ... How much Y ? 5. No effect at all My Answer - I think because...
a. Details of Prepaid Insurance are shown in the account Prepaid Insurance Jan 1 Bal 2,500...
a. Details of Prepaid Insurance are shown in the account Prepaid Insurance Jan 1 Bal 2,500 Mar 31 3,600 Tiger prepays insurance on March 31 each year. At December 31, $700 is still prepaid. b. Tiger pays employees each Friday. The amount of the weekly payroll is $6,200 for a five-day work week The current acCounting period ends on Thursday Tiger has a note receivable. During the current year, Tiger has earned accrued interest revenue of $500 that it will...
Please explain both to me 1/1 point 2. Fernando is purchasing a home for $101,750 and...
Please explain both to me
1/1 point 2. Fernando is purchasing a home for $101,750 and is financing 65% of it. The documentary stamp tax on (1 point) the deed in his state is $0.70 per $100 or portion thereof. How much will he pay for the documentary stamp tax? c (1 pt) $712.25 C (0pts) $1453.57 X (0pts) $462.96 C (0pts) $944.82 0/1 point 3. Lucia and Randy have signed a contract to purchase a home. The closing date...
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house wiith the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month. Your answer! Correct answer: $288 A buyer wants to purchase a home for $160,000 with a 15% down payment. The lender charges 2 points....
What are the prorated real estate taxes to be charged to
the buyer?
For this question, prorate using the actual number of days in the month and year. Split the escrow fee 50-50. The seller will pay the revenue stamps, and the buyer will pay title insurance and the recording fee. The buyer assumes the existing mortgage balance of $127,042.42, the buyer will pay in cash at closing the difference between the purchase price and the loan balance, and the...
$7,200 2,100 7,680 Prepaid insurance Supplies Office equipment Unearned rent revenue Salaries expense Rent revenue 5,400 3,250 16,000 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $975 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Briggs Corp. purchases a 24-month property insurance policy for $72,000. The policy is effective immediately. Assume that Briggs prepares adjustments only once a year, on December 31 Required: 1. Compute the monthly cost of the insurance policy $3,00 per month Consider the number of months covered by the annual premium 2. Identify and analyze the transaction to record the purchase of the policy on Apr Activity Operating Accounts Prepaid Thurance Increase, Cash Decrease...
a. Details of Prepaid Insurance are shown in the account Prepaid Insurance Jan 1 Bal 2,500 Mar 31 3,600 Tiger prepays insurance on March 31 each year. At December 31, $700 is still prepaid. b. Tiger pays employees each Friday. The amount of the weekly payroll is $6,200 for a five-day work week The current acCounting period ends on Thursday Tiger has a note receivable. During the current year, Tiger has earned accrued interest revenue of $500 that it will...
Please explain both to me
1/1 point 2. Fernando is purchasing a home for $101,750 and is financing 65% of it. The documentary stamp tax on (1 point) the deed in his state is $0.70 per $100 or portion thereof. How much will he pay for the documentary stamp tax? c (1 pt) $712.25 C (0pts) $1453.57 X (0pts) $462.96 C (0pts) $944.82 0/1 point 3. Lucia and Randy have signed a contract to purchase a home. The closing date...
Most questions answered within 3 hours.
-
A motor spins up from rest to an angular velocity of 165 rad/s
in 1.2 s....
asked 10 minutes ago -
An entomologist sprayed 120 adult Melon flies with a specific
low concentration of malathion and observed...
asked 14 minutes ago -
Suppose that a police car is moving to the right at 27.9 m/s,
while a speeder...
asked 17 minutes ago -
Assume that when adults with smartphones are randomly selected,
48% use them in meetings or classes....
asked 18 minutes ago -
An electric dipole consists of charges +2e and -2e separated by
0.85 nm. It is in...
asked 19 minutes ago -
How many mL of 0.250 M BaCl2 would you need to precipitate all
the sulfate ion...
asked 30 minutes ago -
Calculate the activity of a pure 5.8-μg sample of 3215P
(T12=1.23×106s).
asked 39 minutes ago -
What personality theory and test might a psychologist use for a
small group of elders between...
asked 42 minutes ago -
When five capacitors with equal capacitances are connected in
series, the equivalent capacitance of the combination...
asked 47 minutes ago -
1.
A corporation manufactures two variants of the same product:
Deluxe (D) and Classic (C). The...
asked 49 minutes ago -
A survey of undergraduate students in the School of Business at
Northern University revealed the following...
asked 1 hour ago -
If a random variable Xhas the gamma distribution with α= 2and β
= 1,
(a) What...
asked 1 hour ago