ABC Insurance Co. issues a group of insurance contracts on Dec. 19, 2021. The coverage period of the group starts on Jan. 1, 2022 and the first premium from a policyholder in the group is due Jan. 4, 2022. The group of insurance contracts is not onerous. When is the recognition date of the group of insurance contract issued? December 19, 2021 December 31, 2021 January 1, 2022 January 4, 2022
Q: help
A: Answer
Q: On July 1, 2022, Sheridan Company pays $18,500 to Wildhorse Co. for a 2-year insurance contract.…
A: Journal Entry: Date General Journal Debit Credit Jul. 1 Cash $18,500…
Q: Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of…
A: Prepaid insurance is the amount of insurance that is paid by an entity in advance. In other words,…
Q: ABC Insurance Co. issues a group of insurance contracts on Dec. 19, 2021. The coverage period of the…
A: Group insurance contract is a contract in which the insurance policy is bought for the group. For…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Journal: Recording of a business transactions in a chronological order.
Q: During 2019, Lawton Company introduced a new line of machines thatcarry a 3-year assurance-type…
A: Warranty is a form of assurance given by the seller of the goods to the customer that if there is…
Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Rajin Bhd has a RM50,000 short-term obligation due on 1 March 2020. The Manager discussed with its…
A: Liability is the obligation that an entity or an individual owes to another. It might be owed to the…
Q: On May 1, 2020, Marin Inc. entered into a contract to deliver one of its specialty mowers to…
A: DATE PARTICULARS DEBIT CREDIT a) May 1, 2020 No entry is required as a contract was…
Q: On May 10, 2020, Vaughn Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance…
A: Insurance premium for a month = Total premium collected / Period of insurance = $24,000 / 24 months…
Q: In December 2021, Jordan Inc and Otter-Manufacturing signed a 3 year contract for Jordon to update…
A: Present value of amount to be received = annual payments x Present value factor for advance payment…
Q: . What amount of liability from lawsuit should be reported on December 31, 2021? a. 3,500,000 b.…
A: A liability is a debt that a person or company owes to another party, usually in the form of money.…
Q: On January 2, 2020, Crane Company sells production equipment to Fargo Inc. for $46,000. Crane…
A: Note: Amount for warranty services is not given separatly in the question. So we are taking the…
Q: On January 1, 2020, the entity began a program of granting 2. What is the accrued liability on…
A: Accrued liability is the liability which has been accrued but the company has not been paid yet.…
Q: On January 1, 2021, Packman Corporation agreed to grant its employees two weeks of vacation each…
A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…
Q: Concord Corporation purchased a one-year insurance policy in January 2020 for $79200. The insurance…
A: The question is based on the concept of Financial Accounting.
Q: On May 1, 2020, Tamarisk Inc. entered into a contract to deliver one of its specialty mowers to…
A: Preparation of Journal Entries Here the situation is a contract agreement between Kickapoo…
Q: The insurance total of R9000 on 29 February 2020, the end of the financial year, included a premium…
A: As per expense recognition concept, all expenses and revenues relating to the particular period…
Q: Water Insurance Co issues a group of insurance contracts an Dec. 19, 20x1. On that day, the entity…
A: The following calculations are done in the records of Water Insurance Corporation.
Q: BC Company requires refundable advance payments with special orders for machinery constructed to…
A: Liabilities exists in the form of loans, accounts payable, mortgages, deferred revenues etc. Current…
Q: On May 10, 2020, Marigold Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: The primary reporting of transactions in the books of accounts can be made by recording journal…
Q: On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to…
A: Journal entry record the financial transactions. In case money is received in advance, it is…
Q: On October 1, 2021, Richardson Inc. entered into a contract to deliver one of its specialty…
A: ASC 606 is a revenue recognition standard that affects all business that enter into contracts with…
Q: On May 1, 2020, Mount Company enters into a contract to transfer a product to Eric Company on…
A: Date Account Titles and Explanation Debit Credit June 15, 2020 Cash $25,000…
Q: Riviera Interior Design had the following transactions for the year ended 30 June 2020: This…
A: When an event occurs in the business and it can be measured and expressed in terms of money, it…
Q: On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year…
A: Service income should be recognized as revenue when it is earned. Any advance received against which…
Q: 1. Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the…
A: As per IAS 10, Events after the reporting period, An event is said to be adjusting event if, that…
Q: A RO40,000, interest-bearing note payable is signed on December 26, 2020. If the note is a 120-day…
A: Notes Payable- It is type of financial instrument which helps the entity is collecting fund at a…
Q: On 1/4/2021, Europa Insurance Limited entered into an insurance contract with a customer who paid…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: On December 30, 2006, Gannett purchases a general liability insurance agreement for the period of…
A: Prepaid expenses refer to those expenses which are paid in advance. It is recorded as an asset at…
Q: Constellation Corp. reported the following liability balances on December 31, 2021: 10% note payable…
A: Current liability are the financial obligation of the business which is supposed to be settled…
Q: On May 1, 2020, Nash Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…
A: Date Particulars Debit Credit May 1, 2020 No entry May 15, 2020 Cash $889 Unearned…
Q: On October 10, 2020, Flounder Co. entered into a contract with Belisle Inc. to transfer Flounder’s…
A: Journal Entries in the Books of Flounder Co. for the Year 2020 15th Dec. 2020 Belisle Inc.…
Q: Prepare the journal entry to record this transaction on January 2, 2020, and on December 31, 2020…
A:
Q: LP Corporations sells smart televisions. The corporation also offers its customers a 2 year warranty…
A: Warranty contract includes the promise in a contract from one party to another that the facts and…
Q: In the prior year TBTI had paid the entire year’s insurance policy upfront which expired as of…
A: Journal Entry:- A Journal Entry is simply an outline of the debits and credits of the dealing entry…
Q: On October 5, 2020, a company enters into a contract to transfer a product to the customer. It is…
A: Revenue recognition principle says that revenues of an organisation should be recognised only when…
Q: a P1,000,000 ordinary life insurance policy on its p e insurance policy. The policy year and Ball's…
A: Life insurance expense refers to the costs borne by the company in order to get an insurance…
Q: On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium…
A: Reinsurance is an arrangement between an insurance company (insurer) and other insurance company…
Q: On September 1, 2021, Daylight Donuts signed a $112,000, 9%, six-month note payable with the amount…
A: Notes payable is considered a negotiable instrument. It is classified under the head of current…
Q: On May 10, 2020, Sunland Co. enters into a contract to deliver a product to Splish Brothers Inc. on…
A: Solution:- Preparation of Journal entries for Sunland company as follows:-
Q: On September 1, 2021, Daylight Donuts signed a $110,000, 10%, six-month note payable with the amount…
A: Interest Payable on notes Payable: Interest must be paid on nearly all payable notes. Interest must…
Q: On May 10, 2020, Sweet Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: On May 1. 2020, Indigo Inc entered into a contract to deliver one of its specialty mowers to…
A: Recording journal entry is one of an important and needful process of accounting cycle, through the…
Q: C Inc. sells medical equipment. ABC provides its customers an option to purchase a three-year…
A: On the basis of period of repayment liabilities are classified as current and non current. Any…
Q: On May 10, 2020, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15,…
A: Journal Entry: It is a systematic record of a financial transaction of a company recorded in…
Q: Honest Corporation carried a provision of P1,500,000 in the draft financial statements for the year…
A: Adjusting events are those events occurring after balance sheet date and has relation to the amounts…
Q: On May 14, a prospect completes an applicalion for insurance. The producer collects the initial…
A: The effective date of insurance policy is the date when insurance company legally liable under the…
ABC Insurance Co. issues a group of insurance contracts on Dec. 19, 2021. The coverage period of the group starts on Jan. 1, 2022 and the first premium from a policyholder in the group is due Jan. 4, 2022. The group of insurance contracts is not onerous. When is the recognition date of the group of insurance contract issued?
December 19, 2021
December 31, 2021
January 1, 2022
January 4, 2022
Step by step
Solved in 2 steps
- On October 1, 2019, Grahams WeedFeed Inc. signs a contract to maintain the grounds for BigData Corp. The contract ends on March 31, 2020, and has a monthly payment of 3,200. The contract does not include any stipulations for additional periods. On June 1, Grahams WeedFeed and BigData sign a new 12-month contract that is retroactive to April 1, 2020. The monthly fee for the new contract is 4,000 per month and is also retroactive to April 1, 2020. During April and May of 2020, while the new contract was being negotiated, Grahams Weed Feed continued to maintain the grounds, and BigData continued to pay 3,200 per month. BigData was satisfied with Grahams WeedFeeds performance, and the only issue during negotiations was the monthly fee. Required: Determine if a valid contract exists between Grahams WeedFeed and BigData during April and May 2020.ABC Insurance Co. issues a group of insurance contracts on Dec. 19, 2021. The coverage period of the group starts on Jan. 1, 2022 and the first premium from a policyholder in the group is due Jan. 4, 2022. The group of insurance contracts is not onerous. When is the recognition date of the group of insurance contract issued?On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%. How much is the amount due from ceding company (book of reinsurer)? How much is the amount of commission income recognized by cedant?
- The premium on a four-year insurance policy expiring on december 31, 2034 was paid in total on January 1, 2021. If the original payment was recorded as a prepaid asset, the balance in prepaid asset on December 31, 2022 would be a. lower than the balance on december 31, 2021b. lower than the balance on december 31, 2023c. the same as the balance on december 31, 2023d. the same as the original payment DISCUSSOn May 14, a prospect completes an applicalion for insurance. The producer collects the initial premium and issues a conditional receipt. The insurance company determines that the prospedt is insurable and issues a standard policy on May 26. If the producer delivers the policy to the insured on June 1, the effective date of coverage is A. May 14 B. May 24 C. May 26 D. June 1AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it was issued on January 1, 2019, How much is the earned portion for the month ended January 31, 2019? How much is the earned portion for the month ended December 31, 2019? How much is the unearned portion for the month ended January 31, 2019? How much is the unearned portion for the month ended December 31, 2019? How much is the provision for unearned premium on December 31, 2019?
- On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $826 in advance on May 15, 2020. Kickapoo pays Indigo on May 15, 2020, and Indigo delivers the mower (with cost of $511) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Indigo. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 1, 2020 enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount (b) Prepare the journal entry on May 15, 2020, for Indigo. (Credit account titles are automatically indented when the…On May 1, 2020, Marin Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $895 in advance on May 15, 2020. Kickapoo pays Marin on May 15, 2020, and Marin delivers the mower (with cost of $557) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Marin. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 1, 2020 enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount (b) Prepare the journal entry on May 15, 2020, for Marin. (Credit account titles are automatically indented when the…On May 1, 2020, Nash Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $889 in advance on May 15, 2020. Kickapoo pays Nash on May 15, 2020, and Nash delivers the mower (with cost of $542) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Nash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (b) Prepare the journal entry on May 15, 2020, for Nash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (c) Prepare the journal entry on May 31, 2020, for Nash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is…
- On May 1, 2020, Culver Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $942 in advance on May 15, 2020. Kickapoo pays Culver on May 15, 2020, and Culver delivers the mower (with cost of $585) on May 31, 2020.(a) Prepare the journal entry on May 1, 2020, for Culver. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit May 1, 2020 enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount enter an account title to record the transaction on May 1, 2017 enter a debit amount enter a credit amount (b) Prepare the journal entry on May 15, 2020, for Culver. (Credit account titles are automatically indented when the…In the prior year TBTI had paid the entire year’s insurance policy upfront which expired as of December 31, 2020. The insurance premium for 2021 is $5,600. TBTI renewed and paid half the 2021 insurance premium on December 21, 2020. what would the journal entry be?On May 10, 2020, Sweet Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the full contract price of $2,120 on July 15, 2020. The cost of the goods is $1,490. Sweet delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Sweet related to this contract. Either party may terminate the contract without compensation until one of the parties performs.