EA5. LO 4.2 Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year's 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.

EA5. LO 4.2 Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year's 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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 5EA: Reviewing insurance policies revealed that a single policy was purchased on August 1, for one years...

See similar textbooks

Similar questions

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.
Financial statements Alpine Realty. Inc., organized July 1. 20Y8, is operated by Angela Griffin. How many errors can you find in the following financial statements far Alpine Realty, Inc. prepared after its first month of operations?
26.On June 30, a company paid $3,000 for insurance premiums for the current year and debited the amount to prepaid insurance. At December 31, the bookkeeper for got to record the amount expired. The omission has the following effect on the financial statements prepared December 31. It understates net income. True of false> Group of answer choices True False
Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year’s coverage, in the amount of $6,000. There was no previous balance in the Prepaid Insurance account at that time. Based on the information provided: A. Make the December 31 adjusting journal entry to bring the balances to correct. If an amount box does not require an entry, leave it blank. B. Show the impact that these transactions had. If an amount box does not require an entry, leave it blank.
3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry).$fill in the blank c1967008e049075_1 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of ½ of 1% of the sales of $8,760,000 for the year, determine the following: a. Bad debt expense for the year. b. Balance in the allowance account after the adjustment of December 31. c. Expected net realizable value of the accounts receivable as of December
Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year’s coverage, in the amount of $6,000. There was no previous balance I n the Prepaid Insurance account at that time. Based on the information provided:- Make the December 31 adjusting journal entry to bring the balances to correct. Show the impact that these transactions had.
1. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Insurance Expense, P21,000 and (CR) Cash, P21,000.00. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles2. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Prepaid Insurance, P21,000 and (CR) Cash, P21,000.00. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles3. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Prepaid Insurance, P120,000.00 and (CR) Cash, P120,000.00 a. Transposition b.…
Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year’s 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: Make the December 31 adjusting journal entry to bring the balances to correct. Show the impact that these transactions had on the Prepaid Insurance account by starting with the beginning balance and ending with the ending balance in the account.
1. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as (DR) Prepaid Insurance and (CR) Cash. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles 2. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books as P1,200.00. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles 3. The company uses asset method to record payment for annual insurance amounting to P12,000.00. On February 1, 2021, the bookkeeper entered it in the books insurance as P21,000.. a. Transposition b. Transplacement c. No error d. Error of Omission e. Error of account titles
1. Present entries to record the following for a business that uses the Allowance Method:a) Record the adjusting entry at 12/31/19, the end of the fiscal year to provide for doubtful accounts. The accounts receivable account has a balance of $100,000 and the contra asset account, before adjustment has a debit balance of $700. Analysis of receivables indicates doubtful accounts of $4,500b) In March of the following fiscal year $610 owed by the Filthy Disgusting Yankees Inc was written off.c) Six months later the $610 is reinstated and payment of that amount received2. What is the estimated realizable value of the accounts receivable as reported on the Balance Sheet prepared as of 12/31/193. Assuming that the business had been following the direct write off method for accounting for uncollectibles, present the entry to record the write-off in (1b)4. Record the entry for the reinstatement of the account written off in (3) under the direct write-off method
Reviewing insurance policies revealed that a single policy was purchased on March 1, for one year's 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, Make the December 31 adjusting journal entry to bring the balances to correct. Show the impact that these transactions had.
Reviewing insurance policies revealed that a single policy was purchased on October 1st, for one year's coverage, in the amount of $1,200. There was no previous balance in the prepaid insurance account at that time. Based on the information provided: Make the December 31st adjusting journal entry to bring the balance to correct Insurance Expense?- Prepaid Insurance?- What is the remaining balance for the prepaid insurance on December 31st?