Insurance in the amount of $60,000 was  purchase annually and paid for up front on April 1st. a) What is the initial entry to record insurance if the first month of coverage is April? b) What is the balance in prepaid insurance on December 31st?

Q: On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly…

A: Journalizing - Journalizing refers to the act of recording the exchange of goods in a journal, and…

Q: On April 28th, paid OMR 5,000 for utility expenses for the month. The Journal Entry :should be

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: 1) LaughtonLandscaping has collected the following data for the December 31 adjusting entries: a.…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: The balance in the Prepaid Rent account before adjustment at the end of the vear is 15.000, which…

A: Adjusting entries are recorded to show the changes in amounts of an account due to lapse of time…

Q: The prepaid insurance account shows a debit of $5,280, representing thecost of a 2-year fire…

A: Since nothing is mentioned, it is assumed that the requirement of the question is to prepare the…

Q: Directions: Prepare the adjusting entry for each of the following situations. The last day of the…

A: In this numerical has covered the concept of Adjusting Entry.  The Adjusting Entry is generally…

Q: On July first frilei company purchased a one year insurance policy by paying 4200 dollars prepare…

A: Prepaid expenses: A prepaid expense is a type of asset on the balance sheet that results from a…

Q: Insurance is paid in December for January's premium.  In December, the company makes an entry to…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: A business pays biweekly salaries of $20,000 every other Friday for a 10-day period ending on that…

A: Accrued expense: This is the expense incurred but not yet paid. It is treated as liability until the…

Q: The following additional information is available: Prepaid insurance is for a 12-month insurance…

A: Closing Entries: A closing entry is a journal entry that is made at the end of the accounting period…

Q: On April 1, Tenity, Inc. paid $3,300 for an insurance premium on a three-year insurance policy. At…

A: Prepaid insurance = Total insurance paid - Insurance expense for current year. Insurance expense for…

Q: Buster Industries pays weekly salaries of $30,000 on Friday for a five-day week ending on that day.…

A: Accrued expense: This is the expense incurred but not yet paid. It is treated as liability until the…

Q: on january prepaid insurance was increased for $1,896 related to the cost of a two year premium,…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: The employees of XYZ, Inc., are paid each Friday. The company's fiscal year-end is December 31,…

A: As per the accrual principle of accounting, the expenses incurred needs to be accounted in the…

Q: The balance in the prepaid insurance account, before adjustment at the end of the year,is $18,420.…

A: Insurance expense on March 31 = Balance in the prepaid insurance account - unexpired insurance…

Q: Prospect Realty Co. pays weekly salaries of $27,600 on Monday for a six-day workweek ending the…

A: Adjusting entries: Adjusting entries are those entries which are recorded at the end of the year, to…

Q: On January 1st, XYZ Co. prepays $1,500 for one year of prepaid insurance. What is the amount of…

A: Formula: Income statement: All revenues and expenses are shown in income statement. It tells the net…

Q: Garcia Company had the following selected transactions during the year. (A partial chart of accounts…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1st, XYZ Co. prepays $1,500 for one year of prepaid insurance. What is the amount of…

A: Formula: Monthly insurance expense = Total prepaid insurance / 12 Months

Q: On December 1, Brooks Company paid $21,000 for two years of insurance in advance. On December 1,…

A: In the given case, Insurance of $ 21,000 is paid in advance for 2 years on December 1. The following…

Q: On October 1, Ward Company paid $13,800 for two years of insurance in advance.   1. How much will…

A: From October 1 to December 31 = 3 months Insurance will be expensed for 3 months during the current…

Q: A business pays weekly salaries of $11,420 on Monday for the preceding five-day week ending on…

A: Journal entries record the transactions of the business in its accounting books. Transactions having…

Q: On May 1, a two-year insurance policy was purchased for $9,600 with coverage to begin immediately.…

A: Insurance expense is the amount of insurance premium which is expired in the given time period. It…

Q: Buster Industries pays weekly salaries of $29,000 on Friday for a five-day week ending on that day.…

A: Salaries for 5 day = $29,000 Monday to Tuesday = 2 days Salaries accrued on Tuesday = Total salaries…

Q: Paradise Realty Co. pays weekly salaries of $16,350 on Friday for a five-day workweek ending on that…

A: If the accounting period ends on Monday, the salary payable will be only for one day (Monday).…

Q: A company is in its first month of operations. On January 1, the company borrows $10,000 from the…

A: Interest is calculated as a percentage of a loan borrowed and paid to the bank.

Q: The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly…

A: Adjusting journal entry: At year-end when the company finalizes its accounts, any unrecognized…

Q: On December 1, Daw Co. accepts a $34,000, 45-day, 9% note from a customer. (1) Prepare the year-end…

A: Journal entry the process of recording the business transactions in the books of accounts for the…

Q: Suppose on January 1 Andrew's Tavern prepaid rent of $6,000 for the full year. At June 30, how much…

A: Rent expenses recorded on June 30 = Total prepaid rent x no. of months/ 12

Q: On January 1, DogMart Company purchased a two-year liability insurance policy for $34200 cash. The…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: 1) LaughtonLandscaping has collected the following data for the December 31 adjusting entries: a.…

A: Journal entries is the primary reporting of the transactions occurring in the books. These are…

Q: A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day.  The…

A: Salaries means the amount paid to employee for the services rendered.

Q: On July 1, a company paid the $1,200 premium on a one-year insurance policy with benefits beginning…

A: Solution: Insurance paid in advance is prepaid insurance which needs to be adjusted to recognize…

Q: On December 1, Daw Co. accepts a $10,000, 45-day, 6% note from a customer. (1) Prepare the year-end…

A: Date Account Titles and Explanation  Debit   Credit  Dec'31 Accrued Interest on Note  $         50…

Q: Prospect Realty Co. pays weekly salaries of $18,030 on Monday for a six-day workweek ending the…

A: Adjusting entry: It implies to a journal entry that is recorded in the company's books at the…

Q: Chabon Corp. purchased a six-month insurance policy on December 1, 20X1 for $600 in cash. The policy…

A: Prepaid Expenses :— It is the expense that is paid in advance for the expenses that are not accrued…

Q: The balance in the prepaid rent account before adjustment at the end of the year is $15,192, which…

A: Adjusting entries:   The entries that are made at the end of an accounting period in accordance with…

Q: On March 1, Gonzalez Magazine Company receives annual subscriptions totaling $612,900. The first…

A: Solution: Total amount received for subscription = $612,900

Q: At the end of the current year, the prepaid insurance account showed a debit the balance of ₱5,000;…

A: Insurance expense = Beginning prepaid insurance balance + insurance premiums paid - Ending prepaid…

Q: Ray Co pays $900 for office supplies in April and debits Office Supplies. Ray Co's year-end is May…

A: Adjusting entries are those journal entries which are passed at the end of accounting period in…

Q: Friday for a five-day week ending on that day. The adjusting entry necessary at the Buster…

A: Introduction: The period ends on Tuesday, but the payout occurs on Friday, necessitating an…

Q: The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000.…

A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…

Q: Prospect Realty Co. pays weekly salaries of $16,980 for a six-day workweek (Monday thru Saturday).…

A: Adjusting journal entry requires for those financial transaction on which any adjustment is needed…

Q: Prepare the adjusting entry for Sonnie Ramos Tours under. each of the following situations. The last…

A: Adjusting entries are the accounting entries passed at the end of the period to record the…

Q: On May 1, Thomas Company paid $7,800 for one year of advertising in advance. Required:   1. How much…

A: Advertisement advance for  one year =$7800 Months of current year for which the payment of…

Q: For each of the following separate situations, determine the amount of expense each company should…

A: In case of accrual basis of accounting, Income is recognised as and when earned and expense is…