Bieber Company paid $3,408 on June 1, 2015 for a TWO-YEAR insurance policy and recorded the entire amount as PREPAID INSURANCE. The December 31, 2015 adjusting entry is: A. Debit Insurance Expense and credit Prepaid Insurance $994. B. Debit Insurance Expense and credit Prepaid Insurance $2,414. C. Debit Prepaid Insurance and credit Insurance Expense $994. D. Debit P Debit Prepaid Insurance and credit Insurance Expense $2,414.

Bieber Company paid $3,408 on June 1, 2015 for a TWO-YEAR insurance policy and recorded the entire amount as PREPAID INSURANCE. The December 31, 2015 adjusting entry is: A. Debit Insurance Expense and credit Prepaid Insurance $994. B. Debit Insurance Expense and credit Prepaid Insurance $2,414. C. Debit Prepaid Insurance and credit Insurance Expense $994. D. Debit P Debit Prepaid Insurance and credit Insurance Expense $2,414.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.7E

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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.
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 following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owners equity. 3. Prepare a balance sheet, assuming that the current portion of the note payable is 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
Interest Receivable On June 1, 2016, MicroTel Enterprises lends $60,000 to MaxiDriver Inc. The loan will be repaid in 60 days with interest at 10%. Required Prepare the journal entry on MicroTels books on June 1, 2016. Prepare the adjusting entry on MicroTels books on June 30, 2016. Prepare the entry on MicroTels books on July 31, 2016, when MaxiDriver repays the principal and interest.
Hardys Landscape Services total revenue on account for 2018 amounted to 273,205. The company, which uses the allowance method, estimates bad debts at percent of total revenue on account. Required Journalize the following selected entries: 2012 Dec. 12Record services performed on account for E. E. Morton, 245. 31Record the adjusting entry for Bad Debts Expense. 31Record the closing entry for Bad Debts Expense. 2013 Feb. 18Write off the account of E. E. Morton as uncollectible, 245. Check Figure Adjusting entry amount, 1,366.03
Arid Company paid $1,704 on June 1, 2013, for a two-year insurance policy and recorded the entire amount as Insurance Expense. December 31, 2013, adjusting entry is Group of answer choices debit Prepaid Insurance and credit Insurance Expense, $497. debit Insurance Expense and credit Prepaid Insurance, $497. debit Prepaid Insurance and credit Insurance Expense, $1,207. debit Insurance Expense and credit Prepaid Insurance, $1,207.
Juices of Pineapple Company paid $3,600 on June 1, 2020 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2020 adjusting entry is: a. debit Insurance Expense and credit Prepaid Expense, $1,050 b. debit Insurance Expense and credit Prepaid Expense, $2,550 c. debit Prepaid Expense and credit Insurance Expense, $1,050 d. debit Prepaid Expense and credit Insurance Expense, $2,550
Carlile Company paid $3,600 on November 1, 2024 for a 12-month insurance policy. The company's bookkeeper recorded the payment with a debit to Insurance Expense and a credit to Cash. Which of the following is the correct December 31, 2024 adjusting journal entry? Question 1Select one: Debit Prepaid Insurance and credit Insurance Expense, $600 Debit Prepaid Insurance and credit Insurance Expense, $3,000. Debit Insurance Expense and credit Prepaid Insurance, $3,600. Debit Insurance Expense and credit Prepaid Insurance, $3,000.
Hershey company purchased one year insurance policy on August 1st and recorded the $4,200 premium to prepaid insurance. At its December 31 year end, Hershey company would record which of the following adjusting entries: A. Debit insurance expense and credit prepaid insurance for $2,450 B. Debit prepaid insurance and credit insurance expense for $1,750 C. Debit insurance expense and credit accounts payable for $4,200 D. Debit insurance expense and credit prepaid insurance for $1,750
Cheyenne Corp. purchased a 12-month insurance policy on March 1, 2017 for $7680. At March 31, 2017, the adjusting journal entry to record expiration of this asset will include: a.) a debit to Prepaid Insurance and a credit to Insurance Expense for $768. b.) a debit to Prepaid Insurance and a credit to Cash for $7680. c.) a debit to Insurance Expense and a credit to Cash for $640. d.) a debit to Insurance Expense and a credit to Prepaid Insurance for $640.
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Midwest Manufacturing purchased a three-year insurance policy for $30,000 on January 2, 2015.Prepare any journal entries, adjusting journal entries, and closing journal entries required on January 2, 2015, December 31, 2015, and December 31, 2016. Summarize these entries in T-accountsfor Prepaid Insurance, Insurance Expense, Cash, and Retained Earnings. Assume the January 2,2015, balances in these accounts were $0, $0, $90,000, and $80,000, respectively. Given only theentries for insurance, indicate what amounts would be reported for each of these accounts on thebalance sheet and income statement prepared on December 31, 2015, and December 31, 2016.

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	A.	Debit Insurance Expense and credit Prepaid Insurance $994.
	B.	Debit Insurance Expense and credit Prepaid Insurance $2,414.
	C.	Debit Prepaid Insurance and credit Insurance Expense $994.
	D.	Debit P Debit Prepaid Insurance and credit Insurance Expense $2,414.