Question
Asked Sep 30, 2019
6 views

At the beginning of 2009, A company prepaid insurance in the amount of 120,000 for one year. At the end of December 2009 what are the balances of the prepaid insurance account and the insurance expense account.

check_circle

Expert Answer

Step 1

Beginning prepaid insurance balance is 120,000 for one year, it means insurance premium is paid in advance for one year or twelve months. This advance payment of insurance expense will not be recognized as insurance expense, till it has been incurred in the business.

Step 2

Thus, at the end of the year prepaid insurance expense of 120,000 will recognized a...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Accounting Principles

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: 3-31 CVP analysis, international cost structure differences. Braided Rugs, Inc., is considering thre...

A: 1) 

question_answer

Q: Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement...

A: Definition of Cash flow from operating activities:Cash Flow from operating activities refers to the ...

question_answer

Q: Converting a balance sheet to a common size balance sheet

A: Common size financial statements: These are the financial statements in which all the items are expr...

question_answer

Q: The following were selected from among the transactions completed by Babcock Company during November...

A: Due to missing of accounts title charts I proceed the answer with the given information.

question_answer

Q: LSG Company is a calendar year, cash basis taxpayer. On November 1, 2018, LSG paid $9,450 cash to th...

A: The expenditure is a prepayment for 18 months, so the monthly amortization is calculated as follows:...

question_answer

Q: The following information relates to Sunland Company for the year 2022. Retained earnings, Janua...

A: Calculate net income 

question_answer

Q: James v. U.S. 366 U.S. 213. What court heard this case? In what year was this case decided? What ...

A: In the given case, the US Supreme Court decided that illegal funds received by a taxpayer is treated...

question_answer

Q: Help

A: 1. Bank reconciliation statement on May 31, 2021 is as follows:

question_answer

Q: i need help finishing this problem

A: Calculate the number of equivalent units of production for both materials and conversion for the mon...