A company’s adjusting entry for prepaid insurance is a debit to insurance expense for P600. If the policy had a six-month duration, how much did it cost originally?
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A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: The prepaid insurance account had a balance of $3,000 at the beginning of the year. The account was…
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Q: The adjusting entry on December 31 is
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Q: The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000.…
A: Adjusting entries:Adjusting entries refers to the entries that are made at the end of an accounting…
Q: The prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of…
A: Hence, current year insurance expenses are $15,500. It is obtained by the addition of opening…
Q: The balance in the prepaid rent account before adjustment at the end of the year is $11,940, which…
A: Entry will be: Hence, correct option is (b)
Q: On january 1 a company purchased at five year insurance policy for 3700 with coverage starting right…
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Q: Ihowse Company paid $6,000 on June 1 for a one year insurance policy and recorded the transaction to…
A: Adjusting entries are prepared by the business entity at the end of the accounting period. These are…
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A: Prepaid expenses are those expenses which are paid in advance for future period of time. Initially…
Q: On July 1, 2022, Oriole Company pays $14,000 to Carla Vista Co. for a 1-year insurance contract.…
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A: Three month Prepaid rent was $13,200 so the rent for one month will be 132003 = $4,400
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Q: On 1 January 2019, the company paid OMR 4500 cash as rent expenses for two months. Select one:…
A: Prepaid expenses are the expenses that must be accounted for over multiple reporting periods.…
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Q: The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000.…
A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…
Q: The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000.…
A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…
Q: The balance in the Prepaid Insurance * account before adjustment at the end of the year is P7,200,…
A:
Q: On January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting…
A: Solution: Insurance expense for first year = 1,800 / 5 = $360
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Q: The prepaid insurance account had a beginning balance of $6,000 and was debited for $7,200 of…
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Q: Under Edelbert company’s accounting system, all insurance premiums paid are debited to prepaid…
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A: Adjusting entry: It implies to a journal entry that is recorded at the closing of an accounting…
Q: At the beginning of 2009, A company prepaid insurance in the amount of 120,000 for one year. At the…
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A: The prepaid rent is the rent paid in advance but not due for payment yet.
Q: An analysis of the company's insurance policies provided the following facts. Policy Date of…
A: The term prepaid protection alludes to installments that are made by people and organizations to…
Q: The prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of…
A: Required journal entry:
Q: On 1 January 2019, the company paid OMR 4500 cash as rent expenses for two months. Select one: a.…
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A company’s
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- Each of the following independent situations relates to the recognition of revenue: a. On June 2, 2019, a customer books travel on an airline, paying 500 for a round-trip ticket that departs July 15, 2019, and returns July 20, 2019. In addition, once the round-trip ticket is used, the airline credits the passengers frequent-flier account for 500 miles. The airline determines that each frequent-flier point has a value of 0.01. b. On May 1, 2019, a retailer enters into a contract with a construction company. The construction company will build a new warehouse for the retailer at a price of 2 million. The retailer will make four equal payments to the construction company over the 1-year construction period, starting on May 1, 2019, and then every 4 months. The retailer can cancel construction at any time and will own any construction to date; however, it must pay the construction company for work done up to the cancellation date. The building is completed on April 30,2019. c. Morning Donut agrees to supply donuts and coffee on a daily basis to a local business. The contract starts on January 1, 2019, and runs for 1 year. Morning Donut charges 400 per week for the donuts and coffee. d. The Raleigh Knights sell four season tickets to a customer. The Knights play 10 regular season games, and the cost of one season ticket is 250. Required: For each situation, use the 5-step process to determine when revenue can be recognized. Determine (1) if a contract exists, (2) the performance obligations in the contract, (3) the transaction price in the contract, (4) how the transaction price is allocated to the performance obligations, and (5) when revenue is recognized.Reviewing insurance policies revealed that a single policy was purchased on March 1, for one years coverage, in the amount of $9,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided, A. Make the December 31 adjusting journal entry to bring the balances to correct. B. Show the impact that these transactions had.If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
- On September 1, a company received an advance rental payment of $12,000, to cover six months rent on an office building. There was no beginning balance in the Unearned Rent account for the period. Based on the information provided, A. Make the December 31 adjusting journal entry to bring the balances to correct. B. Show the impact that these transactions had.Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31.Reviewing insurance policies revealed that a single policy was purchased on August 1, for one years coverage, in the amount of $6,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided: A. Make the December 31 adjusting journal entry to bring the balances to correct. B. Show the impact that these transactions had.
- The balance in the unearned rent account for Jones Co. as of December 31 is $1 ,20(). If Jones Co. failed to record the adjusting entry for $600 of rent earned during December, the effect on the balance sheet and income statement for December would 1w: A. Assets understated by $600; net income overstated by $600. B. Liabilities understated by $600; net income understated by $600. C. Liabilities overstated by $600; net income understated by $600. D. Liabilities overstated by $600; net income overstated by $600.The balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200, which represents twelve months’ Insurance purchased on December 1. The adjusting entry required on Dec. 31, 2018 is a. debit Prepaid Insurance, P7,200; credit Insurance Expense, P7,200 b. debit Insurance Expense, P600; credit Insurance Payable, P600 c. debit Insurance Expense, P6,600; credit Prepaid Insurance, P6,600 d. debit Prepaid Insurance, P600; credit Insurance Expense, P600 e. debit, Insurance Expense, P600; credit Prepaid Insurance, P600On january 1 a company purchased at five year insurance policy for 3700 with coverage starting right away if the purchase was recorded in the prepaid insurance account and the company records adjustment only at year end the adjusting entry at the end of the first year is?
