Question

please show work and give me explanation

9. At December 31, 2013, before any year-end adjustments, Murmur Company's Insurance Expense account had a balance of $1.450 and its Prepaid Insurance account had a balance of $3,800. It was determined that $2,800 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be a. $1,450. $2,450. $2,800. $4,250. cu dod

Answer 1

9. The answer is $4,250.

Particulars	Amount
Insurance expense Balance	$1,450.00
Prepaid which expired	$2,800.00
Closing insurance	$4,250.00

The insurance prepaid expense which has expired would have to be transferred to expenditure at the end of the year and thus insurance expense amount would increase.

6. The answer $150 is right. 1 months interest at 9% per annum for 20,000 = 20,000 x 9% x 1/12 = $150.

10. The answer $1,000 is right. balance in prepaid = 3,800-2,800 = $1,000.

11. answer is a. debit Rent expense, $6000 and credit prepaid rent $6000. The rent expenditure has to be booked and thus debited. The prepaid rent has to be reduced and hence credited.