Ans is A
Insurance exp Dr 240
Prepaid insurance Cr 240
Insurance exp = 720/12*4 = $240
Hi mate, |
I would be grateful to you if you can provide a thumbs up and write one beautiful comment. It will improve my rating and let me continue my journey here. |
In case of doubt, please comment. I will consider myself fortunate if I can help you. |
All the best for your bright future. |
On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $720. The correct...
On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $1,440. The correct adjusting entry on December 31, 2019, is: Multiple Choice debit Insurance Expense $480; credit Prepaid Insurance $480 debit Insurance Expense $1,080; credit Prepaid Insurance $1,080 debit Prepaid Insurance $120; credit Insurance Expense $120 debit Prepaid Insurance $1,440; credit Insurance Expense $1,440
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...
On August 1, 2019, a firm purchased a 1-year insurance policy for $6,900 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, is Multiple Choice $2,300 $4,025 $6,900 $2,875 On April 1, 2019, a firm accepted a 6-month, 10 percent note for $2,400 from a customer with an overdue balance. The accrued interest recorded for this note for the year ended June 30, 2019, is Multiple Choice $60...
VULELE Tate Company paid $12,000 for a one-year insurance policy on February 1, 2019 and the insurance coverage began on February 1. Assuming the company made the most appropriate journal entry to record the insurance on February 1 and that no other adjusting entries have been made, the December 31, 2020 adjusting entry is debit Insurance Expense and credit Prepaid Insurance Expense for $11,000. debit Prepaid Insurance Expense and credit Insurance Expense for $11,000. debit Prepaid Insurance Expense and credit...
Smokey Company purchases a one-year insurance policy on July 1 for $13,176. The adjusting entry on December 31 is Oa. debit Insurance Expense, $6,588 and credit Prepaid Insurance, $6,588 Ob. debit Insurance Expense, $13,176 and credit Prepaid Insurance, $13,176 Oc. debit Insurance Expense, $1,098 and credit Prepaid Insurance, $13,176 Od. debit Prepaid Insurance, $12,078 and credit Cash, $12,078
On January 1 a company purchased a five-year insurance policy for $2,300 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: A.)Debit Insurance Expense, $460; credit Prepaid Insurance, $1,840. B.)Debit Prepaid Insurance, $460; credit Insurance Expense, $460. C.)Debit Prepaid Insurance, $1,840; credit Insurance Expense, $1,840. D.)Debit Insurance Expense, $460; credit Prepaid Insurance, $460. E.)Debit Prepaid Insurance,...
1. A firm purchased a two-year insurance policy for $4,800 on July 1, 2019. The $4,800 was debited to the Prepaid Insurance account. 2. On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a one-year period. T firm paid $14,400 in advance and debited the amount to Prepaid Advertising Prepare end-of-month adjusting entries for each of the above situations. View transaction list Journal entry worksheet Prepare the adjusting entry...
1. A firm purchased a four-year insurance policy for $10,080 on July 1, 2019. The $10,080 was debited to the Prepaid Insurance account 2. On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a three-year period The firm paid $43,560 in advance and debited the amount to Prepaid Advertising Prepare end-of-month adjusting entries for each of the above situations. Prepare the adjusting entry for advertising. Note: Enter debits before...
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
QUESTION 6 Bieber Company paid $3,408 on June 1.2019 for a TWO-YEAR Insurance policy and recorded the entire amount as PREPAID INSURANCE. The December 21 2019 adjusting entry is: A. Debit Insurance Expense and credit Prepaid insurance 5094, B. Debit Insurance Expense and credit Prepaid Insurance $2,414, C. Debit Prepaid Insurance and credit Insurance Expense $994. D. Debit Prepaid Insurance and credit Insurance Expense $2,414,