Homework Help is Here – Start Your Trial Now!
Business
Accounting
on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 69E: Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1,...
See similar textbooks
icon
Related questions
Question

on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

Selected December-January Transactions Purchased Insurance Started Work for Telo Dec. 31 Year-End Finished Work for Telo Dec 1 Dec 7 Dec 13 (Dec 24 Jan 5 Jan 12 Purchased Supplies Received Cash in Advance Wages Paid Additional Information as of December 31 Telo Job Completion at Year-End ABX Job Completion at Year-End Telo ABX 60% Complete 25% Complete Wages Earned By Workers but not yet Paid at Supplies Remaining at Year-End Year-End
Transcribed Image Text:Selected December-January Transactions Purchased Insurance Started Work for Telo Dec. 31 Year-End Finished Work for Telo Dec 1 Dec 7 Dec 13 (Dec 24 Jan 5 Jan 12 Purchased Supplies Received Cash in Advance Wages Paid Additional Information as of December 31 Telo Job Completion at Year-End ABX Job Completion at Year-End Telo ABX 60% Complete 25% Complete Wages Earned By Workers but not yet Paid at Supplies Remaining at Year-End Year-End
1. Record the journal entries required for December, excluding the December 31 year-end adjusting entries. 2. Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. 3. Record the journal entries required for January. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. View transaction list Journal entry worksheet 1 4 5 > Record the insurance coverage that expired. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Insurance expense 2,400 Prepaid insurance 2,400:
Transcribed Image Text:1. Record the journal entries required for December, excluding the December 31 year-end adjusting entries. 2. Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. 3. Record the journal entries required for January. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and (e) unearned revenue. View transaction list Journal entry worksheet 1 4 5 > Record the insurance coverage that expired. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Insurance expense 2,400 Prepaid insurance 2,400:
Expert Solution
Step 1

As per the accrual method of accounting, we need to accrue the expenses which incur in a particular accounting period.

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Computation of Taxable Income
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
PAYROLL ACCT., 2019 ED.(LL)-TEXT
PAYROLL ACCT., 2019 ED.(LL)-TEXT
Accounting
ISBN:
9781337619783
Author:
BIEG
Publisher:
CENGAGE L
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS