Coffee Co. has a $3,600 balance in Prepaid Insurance that represents the premium paid in advance...
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
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Coffee Co. has a $3,600 balance in Prepaid Insurance that
represents the premium paid in advance...
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
Which of the following is TRUE regarding the accounts prepaid rent and rent expense? A.Prepaid rent...
Which of the following is TRUE regarding the accounts prepaid rent and rent expense? A.Prepaid rent represents the cost of rent not yet paid for, while rent expense represents the cost of rent which has been paid for. B.TThese account titles both mean the same thing and are used interchangeably. C.Prepaid rent represents the cost of rent paid for but not yet used, while rent expense represents the cost of rent used to deliver goods or services to customers. D.Rent...
Garden Hospital paid a three-year insurance premium of $3,600 in advance on January 1
Garden Hospital paid a three-year insurance premium of $3,600 in advance on January 1, 20x1, debiting the $3,600 to the prepaid account. At the end of the year, the necessary adjusting entry was not made, and the omission was not discovered. What effect would this error have on total assets, total liabilities, and hospital net assets, as reported in the hospital's balance sheet for December 31, 20X1?
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...
$ Prepaid insurance Prepaid rent 3,750 26,100 Interest receivable Salaries payable Unearned revenue 33,000 Interest revenue...
$ Prepaid insurance Prepaid rent 3,750 26,100 Interest receivable Salaries payable Unearned revenue 33,000 Interest revenue 11,000 • The insurance policy indicates that on December 31, 2010, only three months remain on the 48-month policy that originally cost $12,000 (purchased on April 1, 2007). • Brenda's has a note receivable with $3,600 of interest due from a customer on January 1, 2011. This amount has not been recorded. • The accounting records show that two-third of the revenue paid in...
7. The prepaid insurance account has a $8,000 beginning balance. Additional insurance premiums in the amount...
7. The prepaid insurance account has a $8,000 beginning balance. Additional insurance premiums in the amount of $12,000 were paid during the year. At year-end, there is $3,000 of insurance coverage remaining. The entry needed to adjust the account is: A. Prepaid Insurance 12,000 Cash 12,000 B. Insurance Expense 17,000 Prepaid Insurance 17,000 C. Insurance Expense 3,000 Prepaid Insurance 3,000 D. Prepaid Insurance 17,000 Insurance Expense 17,000...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Briggs Corp. purchases a 24-month property insurance policy for...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Briggs Corp. purchases a 24-month property insurance policy for $72,000. The policy is effective immediately. Assume that Briggs prepares adjustments only once a year, on December 31 Required: 1. Compute the monthly cost of the insurance policy $3,00 per month Consider the number of months covered by the annual premium 2. Identify and analyze the transaction to record the purchase of the policy on Apr Activity Operating Accounts Prepaid Thurance Increase, Cash Decrease...
nnawers the question pelats each) Choose the one alternative that best completes the 1) Which of...
nnawers the question pelats each) Choose the one alternative that best completes the 1) Which of te tollowing is a per B) Advertising Expense D) Dividends A Retsined Larnings saction would not be recorded under cash-basis Paying salaries to ernployees B) 1 ing services to eustomers for cash ing supplies on account. one year of rent in advance C) Purchasing D) Paying ) The primary purpose of closing entries is to A) Ensure that all assets are 8) Update thase...
$7,200 2,100 7,680 Prepaid insurance Supplies Office equipment Unearned rent revenue Salaries expense Rent revenue 5,400...
$7,200 2,100 7,680 Prepaid insurance Supplies Office equipment Unearned rent revenue Salaries expense Rent revenue 5,400 3,250 16,000 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $975 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six...
43. Your company, which uses accrual basis accounting, pays $18,000 in advance to cover a 3-year insurance premium...
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...
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...
$ Prepaid insurance Prepaid rent 3,750 26,100 Interest receivable Salaries payable Unearned revenue 33,000 Interest revenue 11,000 • The insurance policy indicates that on December 31, 2010, only three months remain on the 48-month policy that originally cost $12,000 (purchased on April 1, 2007). • Brenda's has a note receivable with $3,600 of interest due from a customer on January 1, 2011. This amount has not been recorded. • The accounting records show that two-third of the revenue paid in...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Briggs Corp. purchases a 24-month property insurance policy for $72,000. The policy is effective immediately. Assume that Briggs prepares adjustments only once a year, on December 31 Required: 1. Compute the monthly cost of the insurance policy $3,00 per month Consider the number of months covered by the annual premium 2. Identify and analyze the transaction to record the purchase of the policy on Apr Activity Operating Accounts Prepaid Thurance Increase, Cash Decrease...
nnawers the question pelats each) Choose the one alternative that best completes the 1) Which of te tollowing is a per B) Advertising Expense D) Dividends A Retsined Larnings saction would not be recorded under cash-basis Paying salaries to ernployees B) 1 ing services to eustomers for cash ing supplies on account. one year of rent in advance C) Purchasing D) Paying ) The primary purpose of closing entries is to A) Ensure that all assets are 8) Update thase...
$7,200 2,100 7,680 Prepaid insurance Supplies Office equipment Unearned rent revenue Salaries expense Rent revenue 5,400 3,250 16,000 Monthly financial statements are prepared. Using the following information, record in a general journal the adjusting entries necessary on January 31: a. Prepaid Insurance represents a three-year premium paid on January 1. b. Supplies of $975 were on hand January 31. c. Office equipment is expected to last eight years. Depreciation is recorded monthly. d. On January 1, the firm collected six...
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...
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