Trans Company debited prepaid insurance for $1,320 on July 1, 2017 for a one-year fire insurance...
Trans Company debited prepaid insurance for $1,320 on July 1, 2017 for a one-year fire insurance policy, if the company prepares monthly financial statements, failure to make an adjusting entry on July 31 for the amount of insurance that has expired would cause?
Homework Answers
| expired insurance | |||||||
| 1320/12*1 | |||||||
| 110 | |||||||
| expenses would be understated by $110 and assets would be over | |||||||
| stated by $110 | |||||||
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Trans Company debited prepaid insurance for $1,320 on July 1,
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please answer with solution !
Simba Inc. purchased a two year fire insurance policy for $7,200 on July 1, 2014 effective immediately and credited Cash and debited Insurance Expense for the full amount on July 1, 2014. The Prepaid Insurance had a balance of $6,000 on January 1, 2014 for a previous policy that expired on June 30, 2014. What is the adjusting entry, if any, that is required on December 31, 2014?
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Knight Company began operations on July 1.20x5 and prepares monthly financial statements. It has the following partial unadjusted trial balance at July 31, 20x5: Debit Credit Prepaid Insurance $5786 Unearned Service Revenue $2.900 The balance in the prepaid insurance account relates to a 1-year insurance policy, effective July 1, 20x5. Which of the following would be the correct adjusting journal entry at July 31, 20x5 with respect to this insurance policy? Select one: a. Debit Prepaid Insurance $482 and Credit...
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