The $4,500 balance in Prepaid Insurance represents the premium paid in advance for a three-month liability...
The $4,500 balance in Prepaid Insurance represents the premium paid in advance for a three-month liability insurance policy. Assuming that 2 months of premium has now expired, the adjustment would be recorded in the work sheet as a:
Select one:
a. debit to Prepaid Insurance, $4,500
b. credit to Prepaid Insurance, $1,500
c. debit to Insurance Expense, $4,500
d. debit to Insurance Expense, $3,000
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The $4,500 balance in Prepaid Insurance represents the premium
paid in advance for a three-month liability...
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Coffee Co. has a $3,600 balance in Prepaid Insurance that represents the premium paid in advance for a six-month liability insurance policy. Assuming that 4 months of premium is still remaining, the adjustment would be recorded in the work sheet as a: a.credit to Insurance Expense, $2,400 b.debit to Prepaid Insurance, $1,200 c.credit to Prepaid Insurance, $1,200 d.debit to Insurance Expense, $2,400
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium...
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43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium and debits Prepaid Insurance. How much insurance expense has your company incurred after 1 year has elapsed? a. $18,000 b. $12,000 c. $6,000 d. $0 Use the following information for Questions 44 and 45: Your company shows the following data at the end of its first year: Credit sales for the year Accounts Receivable balance Allowance for Doubtful Accounts $1,000,000 100,000 4,000...
On October 25, 2019, the company paid $27.000 rent in advance for the six-month period (November 2019 through April 2020). On December 31, 2019, the adjustment for expired rent would include Multiple Choice ( a $9.000 debit to Rent Expense ) a $4,500 credit to Cash ) a $27.000 credit to Rent Expense. a $4.500 credit to Prepaid Rent
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