What is the adjusting entry when prepaid insurance expires? Select one: a. debit insurance expense and...
What is the adjusting entry when prepaid insurance expires?
Select one:
a. debit insurance expense and credit prepaid insurance
b. debit prepaid insurance and credit insurance expense
c. debit prepaid insurance and credit cash
d. debit cash and credit insurance expense
Homework Answers
Correct answer--------------a. debit insurance expense and credit prepaid insurance.
.
When insurance premium is paid it is initially recorded as a prepaid expense asset and when insurance expires then only insurance expense is recorded and prepaid insurance is decreased with the amount expired.
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What is the adjusting entry when prepaid insurance expires?
Select one:
a. debit insurance expense and...
Smokey Company purchases a one-year insurance policy on July 1 for $13,176. The adjusting entry on...
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
A company purchased a 6-month insurance premium on January 1 for $1,800. What is the adjusting...
A company purchased a 6-month insurance premium on January 1 for $1,800. What is the adjusting entry to record insurance expired during the month of January? Select one: O A. Debit Insurance expense $300; Credit Prepaid Insurance $300 OB. Credit Insurance expense $300; Debit Prepaid Insurance $300 O C. Debit Insurance expense $1,800; Credit Prepaid Insurance $1,800 O D. Credit Insurance expense $1,800; Debit Prepaid Insurance $1,000
The adjusting entry to record depreciation of equipment is Select one: a. debit Accumulated Depreciation; credit...
The adjusting entry to record depreciation of equipment is Select one: a. debit Accumulated Depreciation; credit Depreciation Expense. b. debit Depreciation Expense; credit Accumulated Depreciation. c. debit Equipment; credit Accumulated Depreciation. d. debit Depreciation Expense; credit Depreciation Payable. e. debit Accumulated Depreciation; credit Equipment.
1. ) The Prepaid Insurance account has a balance of $200 less in the work sheet's...
1. ) The Prepaid Insurance account has a balance of $200 less in the work sheet's Balance Sheet Debit column than in the work sheet's Trial Balance Debit column. This would be the result of a Select one: a. $200 entry to Prepaid Insurance in the work sheet's Adjustments Credit column. b. $200 entry to Prepaid Insurance in the work sheet's Adjustments Debit column. c. $200 entry to Insurance Expense in the work sheet's Adjustments Credit column. d. $400 entry...
Prepare the adjusting entry for supplies. Prepare the adjusting entry for insurance. Prepare the adjusting entry...
Prepare the adjusting entry for supplies.
Prepare the adjusting entry for insurance.
Prepare the adjusting entry for depreciation.
Exercise 5.5 Journalizing and posting adjustments. LO 5-5 Desoto Company must make three adjusting entries on December 31, 2019. a. Supplies used, $10,600 (supplies totaling $17,200 were purchased on December 1, 2019, and debited to the Supplies account) b. Expired insurance, $7,800; on December 1, 2019, the firm paid $46,800 for six months' insurance coverage in advance and debited Prepaid Insurance for...
a. Prepaid Insurance. The Prepaid Insurance account has a $5,500 debit balance to start the year....
a. Prepaid Insurance. The Prepaid Insurance account has a $5,500 debit balance to start the year. A review of insurance policies shows that $1,300 of unexpired insurance remains at year-end. Prepaid insurance Debit Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Debit Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Insurance oxpense Prepaid insurance b. Prepaid Insurance. The Prepaid Insurance account...
The preparation of adjusting entries requires a debit entry to one account and a credit entry to another account
CP 3-1 The preparation of adjusting entries requires a debit entry to one account and a credit entry to another account. ABa. Insurance Expense b. Rent Earned c. Prepaid Rent d. Interest Payable e. Interest Receivable f. Fees Earned g. Unused Supplies h. Unearned Commissions Revenue i. Salaries Payablej. Depreciation Expense1. Commissions Earned 2. Supplies Expense 3. Salaries Expense 4. Unearned Fees 5. Accumulated Depreciation 6. Rent Expense 7. Prepaid Insurance 8. Interest Earned 9. Interest Expense 10. Unearned Rent Required: Match each account in column A with the appropriate account in column B
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues...
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Jan. 2 Received $10,100 for services to be performed in the future. Paid $3,672 for casualty insurance protection for the year. Paid $4,650 for supplies. 10 On January 31, it is determined that $3,460 of the service revenue has been earned and that there is...
please show work 5. What is the proper adjusting entry at June 30, the end of...
please show work
5. What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18,500, and unexpired amounts per analysis of policies of $6,000? a. Debit Insurance Expense, $6,000; Credit Prepaid Insurance, $6,000. b. Debit Insurance Expense, $18,500; Credit Prepaid Insurance. $18.500. C. Debit Prepaid Insurance, $12,500; Credit Insurance Expense, $12,500. d. Debit Insurance Expense, $12,500; Credit Prepaid Insurance, $12,500 6. NWA Air Charter signed a...
Problem 7-5 Prepaid Insurance and the Monthly Prepaid Insurance Adjusting Entry On September 1, 2019, Amy's...
Problem 7-5 Prepaid Insurance and the Monthly Prepaid Insurance Adjusting Entry On September 1, 2019, Amy's Floral Shop, Inc. paid cash for the following two insurance policies Insurance Policy #1 Auto and Truck Type of insurance coverage Starting date of the insurance coverage. September 1, 2019 Period of time coverage is for..3 months Total cost of coverage paid in advance... $525 Insurance Policy #2 Type of insurance coverage.. Business Liability Starting date of the insurance coverage .. Sseptember 1, 2019...
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
A company purchased a 6-month insurance premium on January 1 for $1,800. What is the adjusting entry to record insurance expired during the month of January? Select one: O A. Debit Insurance expense $300; Credit Prepaid Insurance $300 OB. Credit Insurance expense $300; Debit Prepaid Insurance $300 O C. Debit Insurance expense $1,800; Credit Prepaid Insurance $1,800 O D. Credit Insurance expense $1,800; Debit Prepaid Insurance $1,000
Prepare the adjusting entry for supplies.
Prepare the adjusting entry for insurance.
Prepare the adjusting entry for depreciation.
Exercise 5.5 Journalizing and posting adjustments. LO 5-5 Desoto Company must make three adjusting entries on December 31, 2019. a. Supplies used, $10,600 (supplies totaling $17,200 were purchased on December 1, 2019, and debited to the Supplies account) b. Expired insurance, $7,800; on December 1, 2019, the firm paid $46,800 for six months' insurance coverage in advance and debited Prepaid Insurance for...
a. Prepaid Insurance. The Prepaid Insurance account has a $5,500 debit balance to start the year. A review of insurance policies shows that $1,300 of unexpired insurance remains at year-end. Prepaid insurance Debit Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Debit Step 3: Record the December 31, adjusting entry to get from step 1 to step 2. Insurance oxpense Prepaid insurance b. Prepaid Insurance. The Prepaid Insurance account...
At Pronghorn Corp., prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Jan. 2 Received $10,100 for services to be performed in the future. Paid $3,672 for casualty insurance protection for the year. Paid $4,650 for supplies. 10 On January 31, it is determined that $3,460 of the service revenue has been earned and that there is...
please show work
5. What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18,500, and unexpired amounts per analysis of policies of $6,000? a. Debit Insurance Expense, $6,000; Credit Prepaid Insurance, $6,000. b. Debit Insurance Expense, $18,500; Credit Prepaid Insurance. $18.500. C. Debit Prepaid Insurance, $12,500; Credit Insurance Expense, $12,500. d. Debit Insurance Expense, $12,500; Credit Prepaid Insurance, $12,500 6. NWA Air Charter signed a...
Problem 7-5 Prepaid Insurance and the Monthly Prepaid Insurance Adjusting Entry On September 1, 2019, Amy's Floral Shop, Inc. paid cash for the following two insurance policies Insurance Policy #1 Auto and Truck Type of insurance coverage Starting date of the insurance coverage. September 1, 2019 Period of time coverage is for..3 months Total cost of coverage paid in advance... $525 Insurance Policy #2 Type of insurance coverage.. Business Liability Starting date of the insurance coverage .. Sseptember 1, 2019...
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