Bagwis Company has the following information: Prepaid insurance – January 1 1,600,000 Prepaid insurance – December 800,000 Insurance payable decrease by 1,200,000 Insurance payments 4,000,000 How much is the insurance expense under accrual basis? Group of answer choices 3,600,000 4,800,000 3,400,000 4,000,000
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Bagwis Company has the following information:
Prepaid insurance – January 1 |
1,600,000 |
Prepaid insurance – December |
800,000 |
Insurance payable decrease by |
1,200,000 |
Insurance payments |
4,000,000 |
How much is the insurance expense under accrual basis?
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- Prepare journal entries to record the following transactions. Create a T-account for Prepaid Insurance, post any entries that affect the account, and tally the ending balance for the account (assume Prepaid Insurance beginning balance of $9,000). A. April 1, paid cash for one-year policy, $18,000 B. December 31, unexpired premiums, $4,50010 Bagwis Company has the following information: Prepaid insurance – January 1 1,600,000 Prepaid insurance – December 800,000 Insurance payable decrease by 1,200,000 Insurance payments 4,000,000 How much is the insurance expense under accrual basis?The ledger of Casper Consulting at January 31, 20X5 includes the following selectedaccounts:Prepaid insuranceSuppliesBuildingLandNotes payableUnearned service revenueDebit$3,6001,800100.00060,000Credit$90,0008,000Casper's accountant is inexperienced, and he would like your help in preparing thecompany's January 31, 20X5 financial statements. He has provided you with the following information:1. A one-year insurance policy costing $3,600 was purchased on January 1, 20X5. Atthat time the full amount was debited to prepaid insurance.2. A physical inventory count on January 31,20X5 revealed $800 in supplies were still.remaining.3. Land and building were purchased on January 1, 20X5 at a cost of $160,000. Thebuilding has an expected useful life of 20 years. The purchase was financed by paying$70,000 in cash and the balance on a 2-year, 8% note payable. Interest for the monthof January was $600 and was paid on February 1, 20X5.4. Unearned service revenue related to a client retainer paid on…
- 2. Prepare a December 31 balance sheet in proper form for Surety Insurance using the following accounts and amounts: Commissions Revenue Earned.............$40,000Accounts payable..................3,500Accounts receivable............... 5,000M. Bruno, Capital..................103,500Office equipment...................10,000Advertising expense............. 3,200Cash................................... 7,500Land......................................35,000Note payable.......................... 50,000Office supplies........................500Salaries expense....................12,000Salaries payable.....................1,000Building...............................100,000The following balances have been excerpted from Tito Piccolo’s statement of financial position: December 31 January 1 Prepaid Insurance P 6,000 P 7,500 Interest Receivable 3,700 14,500 Salaries Payable 61,500 53,000 Accounts Receivable 550,000 415,000 Allowance for bad debts 40,000 25,000 Tito Piccolo Company reported the following during 2020 the following items: Insurance premiums paid P 41,500 Interest collected 123,500 Salaries paid 481,000 Sales 1,980,000 Assuming that the company wrote off P25,000 and subsequently recovered P20,000. Had the cash basis of accounting been used instead, how much would have been reported as receipt for 2020? (no peso sign, no comma, whole number only)The following balances have been excerpted from Tito Piccolo’s statement of financial position: December 31 January 1 Prepaid Insurance P 6,000 P 7,500 Interest Receivable 3,700 14,500 Salaries Payable 61,500 53,000 Accounts Receivable 550,000 415,000 Allowance for bad debts 40,000 25,000 Tito Piccolo Company reported the following during 2020 the following items: Insurance premiums paid P 41,500 Interest collected 123,500 Salaries paid 481,000 Sales 1,980,000 No uncollectible accounts were written off during 2020. Had the cash basis of accounting been used instead, how much have been reported as receipts for 2020? Note for your final answer: 1. Do not use peso sign 2. Do not use comma 3. Do not use decimal point 4. Round off your final answer to the nearest whole number
- The following balances have been excerpted from Tito Piccolo’s statement of financial position: December 31 January 1 Prepaid Insurance P 6,000 P 7,500 Interest Receivable 3,700 14,500 Salaries Payable 61,500 53,000 Accounts Receivable 550,000 415,000 Allowance for bad debts 40,000 25,000 Tito Piccolo Company reported the following during 2020 the following items: Insurance premiums paid P 41,500 Interest collected 123,500 Salaries paid 481,000 Sales 1,980,000 No uncollectible accounts were written off during 2020. Had the cash basis of accounting been used instead, how much have been reported as receipts for 2020?The following information is provided to you by Amos 31st December 2014 31st December 2015 Shs. ShsWages in arrears 60,000 67,000Insurance paid in advance 21,000 25,500Rates in arrears 7,500 NILRates in advance NIL 9,000Payments made during 2015 were; Wages Kshs. 715,000 Insurance Kshs. 43,500 Rates Kshs. 46,000 Calculate the amounts Amos should transfer to the profit and loss account for wages, insurance and rates for the year 2015.Prepare the Balance sheet extract.The following balances have been excerpted from Tito Piccolo's statement of financial position: Prepaid Insurance Interest Receivable Salaries Payable Accounts Receivable December 31 January 1 P 6,000 P 7,500 3,700 14,500 61.500 53,000 550.000 415.000 Allowance for bad debts 40.000 25,000 Tito Piccolo Company reported the following during 2020 the following items: Insurance premiums paid Interest collected Salaries paid Sales 41,500 123,500 481,000 1,980,000 How much is the interest revenue on the income statement for 2020? (no peso sign, no comma, whole number only)
- Magic Styles, Inc.Unadjusted Trial BalanceAt March 31, 2023Cash $ 18,000.00Prepaid Insurance $ 600.00Prepaid Rent $ 7,300.00Equipment $ 9,700.00Furniture and Fixtures $ 9,700.00Accounts Payable $ 10,800.00Deferred Revenue $ 400.00Notes Payable Long-term) $ 20,000.00Common Stock $ 10,000.00Retained Earnings, February 28, 2023 $ 2,100.00Dividends $ 300.00Service Revenue $ 12,300.00Supplies Expense $ 5,500.00Salaries and Wages $ 3,200.00Utilities Expense $ 700.00Rent Expense $ 600.00TOTAL $ 55,600.00 $ 55,600.00Required:Based on the unadjusted trial balance of Magic Styles, Inc. above, you are required to prepare/write thefollowing:1) An income statement 2) A statement of retained earnings 3) Balance Sheet 4) A paragraph stating your evaluation of the company’s performance and financial status for themonth ending March 31, 2023. In your evaluation, state whether:* the business is profitable;* it is able to pay its current obligations/liabilities; and* its assets are financed more by debts…A company shows a $300 balance in Prepaid Insurance in the Unadjusted Trial Balance. The Adjustments Trial Balance show expired insurance of $100. This adjusting entry results in $100 more in Prepaid Insurance. $100 more in net income. $100 less in net income. None of any answered mentioned.In first of October, Muscat company Paid OMR 12,000 for a one-year insurance policy. The Journal Entry should be: Select one: a. DEBIT Prepaid Insurance OMR 12,000 and CREDIT Cash OMR 12,000 b. DEBIT Insurance expenses OMR 12,000 and CREDIT cash OMR 12,000 c. DEBIT Cash OMR 12,000 and CREDIT Prepaid Insurance OMR 12,000 d. DEBIT Prepaid Insurance OMR 3,000 and CREDIT Cash OMR 3,000 e. No entry—not a transaction