Homework Answers
Insurance policy beginning date is October 01, 2010. It is a two year insurance policy. The closing date or the ending date of the insurance policy is 30th September 2012.
For 2010 [ 1st January 2010 to 31st December 2010]
Insurance policy exhausted for 3 months in 2010 [ Oct, Nov and Dec ]
Insurance expenses = $ 4,320 X 3/24 = $ 540
Prepaid insurance on 31st December 2010 = $ 4,320 - $ 540 = $ 3,780
For 2011 [ 1st January 2011 to 31st December 2011]
Insurance policy exhausted for 12 months in 2011 ( from January to December)
Insurance expenses = $ 4,320 X 12/ 24 = $ 2,160
Prepaid insurance on 31st December 2011 = $ 3,780 - $ 2,160 = $ 1,620
For 2012 [ 1st January 2012 to 31st December 2012]
Insurance policy exhausted for 9 months in 2012 ( from January to September)
Insurance expenses = $ 4,320 X 9/24 = $ 1,620
Prepaid insurance on 31st December 2012 = $ 1,620 - $ 1,620 = $ 0 or nil.
Summary of insurance expenses and prepaid insurance
| Year | Insurance expense | Prepaid insurance on 31st December |
| 2010 | $ 540 | $ 3,780 |
| 2011 | $ 2,160 | $ 1,620 |
| 2012 | $ 1,620 | $ 0 |
Add Answer to:
E3-29A (similar to) Question Help Yodel & Company paid $4,320 on October 1, 2010, for a...
E3-28A (similar to) Question Help In March of 2009, Bianca's Corporation, a newly developed internet game...
E3-28A (similar to) Question Help In March of 2009, Bianca's Corporation, a newly developed internet game company, received $1,080,000 for 2,000 three-year subscriptions to a new online game priced at $180 per year. The subscriptions do not start until June of 2009. Fill in the following chart for each of the given years to show the amount of revenue to be recognized on the income statement and the related liability reported on the year-end balance sheet. Bianca's Corp fiscal year...
E3-34A (similar to) Question Help On October 1, 2010, Computer Consulting, Inc. was formed when the...
E3-34A (similar to) Question Help On October 1, 2010, Computer Consulting, Inc. was formed when the owners contributed $55,000 cash to the business in exchange for common stock. On November 1, 2010, the company paid $36,000 cash to rent office space for the coming year. The consulting services generated $77,000 of cash revenue during 2010. Prepare an income statement, statement of changes in shareholders' equity, and statement of cash flows for the 3 months ended December 31, 2010, and a...
Maya rented office space for her new business on March 1, 2010. To receive a discount,...
Maya rented office space for her new business on March 1, 2010. To receive a discount, she paid $4,680 for 12 months' rent in advance, beginning with March. How will this advance payment appear on the financial statements prepared at year end, December 31? Assume no additional rent was paid in 2011. Use the following chart for your answers: (Complete all answer boxes.) Rent expense for the year ended December 31 Prepaid rent at December 31 2010 2011
A company has a fiscal year-end of December 31: (1) on October 1, $13,000 was paid...
A company has a fiscal year-end of December 31: (1) on October 1, $13,000 was paid for a one-year fire insurance policy: (2) on June 30 the company advanced its chief financial officer $11,000; principal and interest at 5% on the note are due in one year; and (3) equipment costing $61,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $12,200 per year. Prepare the necessary adjusting entries at December 31 for each...
Under Hart Company's accounting system, all insurance premiums paid are debited to Prepaid Insurance. For interim...
Under Hart Company's accounting system, all insurance premiums paid are debited to Prepaid Insurance. For interim financial reports, Hart makes monthly estimated charges to Insurance Expense with credits to Prepaid Insurance. Additional information for the year ended December 31, 2011, follows: Prepaid insurance at Dec. 31, 2010 $210,000 Charges to Insurance expense during 2011, including a year-end adjustment of $35,000 $875,000 Unexpired insurance premiums at December 31, 2011 $245,000 What was the total amount of insurance premiums Hart paid during...
A company has a fiscal year-end of December 31: (1) on October 1, $22,000 was paid...
A company has a fiscal year-end of December 31: (1) on October 1, $22,000 was paid for a one-year fire insurance policy; (2) on June 30 the company lent its chief financial officer $20,000; principal and interest at 6% are due in one year; and (3) equipment costing $70,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $14,000 per year. If the adjusting entries were not recorded, would net income be higher or...
A company has a fiscal year-end of December 31: (1) on October 1, $16,000 was paid...
A company has a fiscal year-end of December 31: (1) on October 1, $16,000 was paid for a one-year fire insurance policy; (2) on June 30 the company advanced its chief financial officer $14,000; principal and interest at 8% on the note are due in one year; and (3) equipment costing $64,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $12,800 per year. If the adjusting entries were not recorded, would net income...
On October 1 of Year 1 M Enterprises paid $2,220 cash for an insurance policy that...
On October 1 of Year 1 M Enterprises paid $2,220 cash for an insurance policy that would provide protection for a one year term. The company’s fiscal closing date is December 31. Based on this information, the amount of insurance expense appearing on the Year 2 Income Statemement would be $___________
Please help you solve step by step Silver Line company adjusts its accounts monthly, performs closing...
Please help you solve step by step Silver Line company adjusts its accounts monthly, performs closing entries annually. The firm's unadjusted trial balance as of December 31. 2011 is on the worksheed enclosed. a) Accrued but unrecorded and uncollected consulting services revenue toals 1.500 USD at December 31.,2011 b) The company detemined that 2.500 USD ofpreviously unemed consulting services revenue had been eamed at December 31.2011 c) Office supplies on hand at December 31 total 110 USD d) The company...
E3-23 (similar to) Question Help Consider the following situations for Takoma Park Welding Services: (Click the...
E3-23 (similar to) Question Help Consider the following situations for Takoma Park Welding Services: (Click the icon to view the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Depreciation for the current year includes Equipment, $2,500. 0 More Info Date Accounts and Explanation Debit Credit (a) Dec. 31 a. Depreciation...
E3-28A (similar to) Question Help In March of 2009, Bianca's Corporation, a newly developed internet game company, received $1,080,000 for 2,000 three-year subscriptions to a new online game priced at $180 per year. The subscriptions do not start until June of 2009. Fill in the following chart for each of the given years to show the amount of revenue to be recognized on the income statement and the related liability reported on the year-end balance sheet. Bianca's Corp fiscal year...
E3-34A (similar to) Question Help On October 1, 2010, Computer Consulting, Inc. was formed when the owners contributed $55,000 cash to the business in exchange for common stock. On November 1, 2010, the company paid $36,000 cash to rent office space for the coming year. The consulting services generated $77,000 of cash revenue during 2010. Prepare an income statement, statement of changes in shareholders' equity, and statement of cash flows for the 3 months ended December 31, 2010, and a...
Maya rented office space for her new business on March 1, 2010. To receive a discount, she paid $4,680 for 12 months' rent in advance, beginning with March. How will this advance payment appear on the financial statements prepared at year end, December 31? Assume no additional rent was paid in 2011. Use the following chart for your answers: (Complete all answer boxes.) Rent expense for the year ended December 31 Prepaid rent at December 31 2010 2011
A company has a fiscal year-end of December 31: (1) on October 1, $13,000 was paid for a one-year fire insurance policy: (2) on June 30 the company advanced its chief financial officer $11,000; principal and interest at 5% on the note are due in one year; and (3) equipment costing $61,000 was purchased at the beginning of the year for cash. Depreciation on the equipment is $12,200 per year. Prepare the necessary adjusting entries at December 31 for each...
Please help you solve step by step Silver Line company adjusts its accounts monthly, performs closing entries annually. The firm's unadjusted trial balance as of December 31. 2011 is on the worksheed enclosed. a) Accrued but unrecorded and uncollected consulting services revenue toals 1.500 USD at December 31.,2011 b) The company detemined that 2.500 USD ofpreviously unemed consulting services revenue had been eamed at December 31.2011 c) Office supplies on hand at December 31 total 110 USD d) The company...
E3-23 (similar to) Question Help Consider the following situations for Takoma Park Welding Services: (Click the icon to view the situations.) Journalize the adjusting entry needed on December 31 for each situation. Use the letters to label the journal entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) a. Depreciation for the current year includes Equipment, $2,500. 0 More Info Date Accounts and Explanation Debit Credit (a) Dec. 31 a. Depreciation...
Most questions answered within 3 hours.
-
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 2 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 3 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 3 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 3 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 3 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 3 hours ago -
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 3 hours ago -
Complete the chapter case, "Turnover Analysis".
Chapter Case
Turnover Analysis
You recently completed your company’s new...
asked 3 hours ago -
What is the pH of solutions having the following H3O+
concentrations? Identify each as acidic, basic,...
asked 4 hours ago -
How does over-voltage of the diode usually occur?
asked 4 hours ago -
If you step on a dirty nail, your doctor will recommend you
update your Tetanus vaccination....
asked 4 hours ago -
Suppose that decreases in the price of milk lead to decrease s
in the retail prices...
asked 4 hours ago