Homework Answers
The Appropriate Debit and Credit entry is :
The initial entry is a debit of $18900 to the prepaid insurance (asset) account, and a credit of $18,900 to the cash (asset) account.
In each next month for the next twelve months, there should be a journal entry that debits the insurance expense account and credits the prepaid expenses account.
Ans : Debit Prepaid Insurance $18900, Credit Cash $18900.
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Assume that $18,900 cash is paid for insurance to cover the next year. The appropriate debit...
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On January 1, Fey Properties paid $12,600 for a three-year insurance premium, with coverage beginning immediately. Fey Company prepares monthly financial statements. Which of the following describes the required adjusting entry on January 31? Debit Cash for $4,200 and Credit Prepaid insurance for $4,200 Debit Prepaid insurance for $350 and Credit Insurance expense for $350 Debit Insurance expense for $350 and Credit Prepaid insurance for $350 Debit Cash for $8,400 and Credit Prepaid insurance for $8,400 Debit Insurance expense for...
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On July 1, 2015, a company paid an $18,900 premium on a 36-month insurance policy for...
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On February 1, 2015, a company paid an $18,900 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table. Income Statement Insurance Expense Accrual Basis Cash Basis Balance Sheet Prepaid Insurance Accrual Basis Cash Basis Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 2015 2016 2017 2018 Total 0 $
CP 2-4 Required: Record the debit and credit in the appropriate account for each of the...
CP 2-4 Required: Record the debit and credit in the appropriate account for each of the following transactions (transaction 1 is done for you): Debit Cash Credit Common Stock 1. Issued common stock for cash 2. Purchased equipment on credit 3. Paid for a one-year insurance policy 4. Billed a customer for repairs completed today 5. Paid this month's rent 6. Collected the amount billed in transaction 4 above 7. Collected cash for repairs completed today 8. Paid for the...
CP 2-4 Required: Record the debit and credit in the appropriate account for each of the...
CP 2-4 Required: Record the debit and credit in the appropriate account for each of the following transactions (transaction 1 is done for you): Debit Credit Common Stock 1. Issued common stock for cash Cash 2. Purchased equipment on credit 3. Paid for a one-year insurance policy 4. Billed a customer for repairs completed today 5. Paid this month's rent 6. Collected the amount billed in transaction 4 above 7. Collected cash for repairs completed today 8. Paid for the...
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1. On September 1, 2016, the Matisse Co. paid $12,000 for insurance to cover the next 12 months. Assume the company prepares all adjusting journal entries at the end of the year, the adjusting journal entry prepared on 12/31/16 would include a: a. Debit to Cash and a credit to Prepaid Insurance of $4,000. b. Debit to Insurance Expense and a credit to Prepaid Insurance of $4,000. C. Debit to Insurance Expense and a credit to Cash of $4,000. d....
On January 1, a company purchased a five-year insurance policy for $3,600 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is: Multiple Choice Debit Prepaid Insurance, $2.880; credit Insurance Expense, $2,880. Debit Prepaid Insurance, $3,600; credit Cash, $3,600. O Debit Insurance Expense, $720; credit Prepaid Insurance. $2.880. Debit Insurance Expense. $720; credit Prepaid Insurance, $720. O...
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On July 1, 2015, a company paid an $18,900 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table. Income Statement Insurance Expense Accrual Basis Cash Basis Cash Basis Balance Sheet Prepaid Insurance Accrual Basis Dec 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Dec. 31, 2018 2015 2016 2017 2018 Total
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On June 1, 20x7, Cambo Corp. paid an annual business insurance premium of $8582. At the time, the bookkeeper debited insurance expense and credited cash. It is now December 31, 20x7 and the adjusting entries are being prepared. Which of the following entries would adjust the prepaid insurance and insurance expense accounts to the appropriate balances? Select one: O a. Debit insurance expense $5006; Credit prepaid insurance $5006 O b. Debit prepaid insurance $3576; Credit insurance expense $3576 O C....
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