on january prepaid insurance was increased for $1,896 related to the cost of a two year premium, with coverage beginning immeditely. How should this account be adjusted on January 31 before financial statements are prepared for the current month?

on january prepaid insurance was increased for $1,896 related to the cost of a two year premium, with coverage beginning immeditely. How should this account be adjusted on January 31 before financial statements are prepared for the current month?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

See similar textbooks

Related questions

Q: ate substantially from hight to hight: e fluctuated from night to night because the bidders have…

A: Bidder: The bidder is the person who sold the goods in auction.

Q: Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each…

A: Break Even Point = Fixed Cost/ ( Sales price - Variable Cost )

Q: Amarnath, is 61 years old man, has earned business income (computed) of Rs 2,50,000, Dividend income…

A: Lets understand the basics. For calculating total income, we need to first determine gross total…

Q: Delta Itd has $820 in inventory, $640000 in fixed assets, $670 in accounts receivable, $800 in…

A: Working Capital: The difference between the current assets and current liabilities is called the…

Q: STL enters into a 5-year lease of an item of plant on January 1, 2022. The annual rentals are P11.5…

A: Lease Liability It is important to calculate the present value of the lease which can be determine…

Q: 3. A food repacking company estimates sales figures of Php15.5M for their most popular item.…

A: Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…

Q: 159. ABC Corp acquired a trademark with fair value of P116,000 in exchange for its own 14,000…

A: Trademark is one of the intangible asset of the business. When a specific sign or mark is obtained…

Q: b) Complete the following table to show how FOB terms apply to merchandise inventory purchased by a…

A: Inventory is the stock that an entity owns for selling in the market. It represents the goods that…

Q: Depreciation expense 15,200 15,200 15,200 15, 200 156,600 157,800 Total operating expenses 174,440…

A: There are two type of costs being incurred in business. Fixed costs are costs that do not change…

Q: Microsoft Excel Ele Edit New Insert Format Tools Date Window Help ✔n. Σ 100% BIUR E%-A- E17 A B 1…

A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: What interest income should reported for 2017

A: Interest Income on note receivable=Carrying amount of the note receivable×Interest rate

Q: On January 13, 20xx, Karl Co. sold on account goods with selling price of P300,000 with terms of…

A: FOB destination, freight prepaid indicates that the seller is responsible for the goods until they…

Q: Total guests during the year for a hotel Number of rooms available (per day) Occupancy REVPAR The…

A: Answer : $141.55

Q: Compute basic and diluted earnings per share for the year ended December 31, 2021.

A: Basic EPS = (Net Income - Preferred Dividend )/ Outstanding Common stock Diluted EPS =…

Q: Van Industries and Frat Corporation trade land in 2021. Van has an adjusted basis of $740,000 in…

A: Realized value were the value that is adjustable . For Frat $740000 For Van $ 660000 Recognized…

Q: Edmonds expected Corporation's sales are to increase by 10% from $4.75 million in 2016 to 5.225$…

A: Answer:- External financing meaning:- Any kind of business investment which is obtained from…

Q: Please explain if the below-mentioned statement is true or false and why, in as much detail as…

Q: 1) Sales Budget with expected Cash Collections All sales are on account. The company collects 60% in…

A: April May June Quarter Budgeted Sales in units 40,000 30,000…

Q: World Enterprises is determined to acquire Intous Ltd through exchanging stocks. World Enterprises…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: What are the golden rules of accounting?

A: Accounting is the process of recording, classifying and summarising financial transactions in order…

Q: ABC Company had the following expenditures related to a software: Costs to develop the software for…

A: In case of intangible asset, expenditure incurred on research should be recorded as an expenses.…

Q: Prepare Income statement? Grey Grig Ltd Trial Balance as at 30 June 2019 Particulars Equipment…

A: Introduction: Income statement: All revenues and expenses are to be shown in income statement. It…

Q: Nonordinary items resulting in income or loss a. include unusual but not infrequent gains. b.…

A: a. include unusual but not infrequent gains.

Q: Moss County Bank agrees to lend the Blossom Company $320000 on January 1. Blossom Company signs a…

A: A journal is a detailed account that records all the financial transactions of a business, to be…

Q: a. How much is the ForEx gain or Loss on February 1, 2017? b. How much is the Net ForEx gain or…

A: Foreign exchange contracts are contracts which are entered in one currency and settled in other…

Q: Calculate the taxable value of the two fringe benefits provided by Mason Ltd for the year ended 31…

A: Fringe benefit is the amount that the employee would pay for the same at retail. The amount of…

Q: Do you believe that contingency theory has made adequate contribution to management accounting? Why?…

A: According to the contingency theory of management accounting, there is no one-size-fits-all approach…

Q: Parallel Enterprises has collected the following data on one of its products. During the period the…

A: Direct material price variance = Actual cost - Standard cost Actual cost given = $257,850…

Q: A partial work sheet for Marge's Place is shown below. Prepare the following adjustments on this…

A: Every business wants to report its financial statements accurately at the end of each accounting…

Q: Q4: These are amounts and prices of Ahmed company store: Account name Quantity Cost per unit 10 30…

A: Lets understand the basics. In FIFO basis company assumes that, goods purchase first are sold first.…

Q: ABOUT AUDITING The process of selecting and developing policies and procedures to help mitigate…

A: Audit Risk- Audit risk is the possibility that an auditor will issue an incorrect opinion on…

Q: a. Compute profitability measures: RNOA, ROA and ROE for 2019 and 2018 using the numbers as reported…

A: Given in the Question: (Amount in Millions) Particulars 2019 2018 2017 Net…

Q: Find the: 1. The balance of the “Shareholders’ Equity” account of the company’s balance sheet as…

A: Answer 1:- The balance of the "Shareholders' Equity account is = 4,430,000. Explanation:-…

Q: Which of the following statements about RRSP is false? ○ 1) The income in an RRSP accumulates at the…

A: Under Registered Retirement Savings Plan (RRSP), money placed in an account grows tax-free until…

Q: The capital accounts of the partnership of Erza, Carla, and Gerald on June 1, 20x9 are presented…

A: when two partners agree to share profit and losses in equal ratio or as aggred and written in…

Q: Engineering Economics: Please answer the following provide explaination and Solution Clin…

A: The alternative which will give least present value of costs that alternative will be choose.…

Q: 3. Complete the below table to calculate the balance sheet data in trend percents with 2019 as base…

A: Lets understand the basics. Trend analysis is a analysis which shows how the variable are changed…

Q: During the current year, Mine View Company incurred P2,000,000 in exploration cost for each of the…

A: Oil exploration expense reported in the income statement for the current year=Number of dry…

Q: OVE INC. has a policy of using non-current assets until they can no longer operate and are…

A: Explanation of Concept Deferred Tax Assets / Deferred tax Liability : are to be calculated when…

Q: Michelle had a $200,000 long-term capital gain when she sold part of her Bitcoin in 2021, increasing…

A: When a capital asset is sold, the phrase capital gain refers to the rise in its value. Simply put, a…

Q: Sam spends $10,000 for 500 shares of XYZ, Inc. He sells all of these shares for $7,000 (a $3.000…

A: Buying a Stock Investment: Buying a stock investment occurs when an investor acquires ownership of a…

Q: ate law. During 2020, a bill designated H.R. 9 is introduced into the state legislature, nich, if…

A: Bingo Game: It is the numbers game played by the individual in cash. As per the law its a illegal.…

Q: Journalize the following transactions for the buyer, Jones Company, using the net method to account…

A: Journal entries are the basic method for recording financial transactions in the books of accounts.…

Q: As Reported Annual Balance Sheet Report Date Scale Assets Cash & cash equivalents Receivables, net…

A: Working capital is the amount of capital needed for day to day operations in business. This is…

Q: A. The following items were taken from the financial statements of Salley, Inc. over a three year…

A: Horizontal analysis is a type of financial statement analysis in which the financial items of one…

Q: On June 1, 20x10, HEAD and ACHE decided to form a partnership contributing their existing…

A: Partnership: It is the relationship of two or more persons to carried out the business with profit…

Q: $122093

Q: Blue Company is unable to reconcile the bank balance at January 31. Blue’s reconciliation is as…

A: A bank reconciliation statement aligns an organization's bank account with its financial documents…

Q: . XYZ has a selling price of 400. If its selling price is expected to decline at a rate 10% per…

A: Sales- Sales are transactions between a customer and a seller in which a commodity is exchanged for…

Q: . Production has indicated that they can produce widgets at a cost of P4.00 each if they lease new…

A: Lease- The lease contract details each party's responsibilities and the terms and conditions of the…

Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

85 )

on january prepaid insurance was increased for $1,896 related to the cost of a two year premium, with coverage beginning
immeditely. How should this account be adjusted on January 31 before financial statements are prepared for the current
month?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?
JOURNAL ENTRIES (ACCRUED INTEREST RECEIVABLE) At the end of the year, the following interest is earned, but not yet received. Record the adjusting entry in a general journal. Interest on 6,000, 60-day, 5.5% note (for 24 days) 22.00 Interest on 9,000, 90-day, 6% note (for 12 days) 18.00 40.00
Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August 1, Jerry paid Garcia 12,000 for 1 year of rent in advance. Prepare journal entries for Garcia to record the collection ofrent and the related year-end adjusting entry on December 31.
Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.
Prepare journal entries to record the business transaction and related adjusting entry for the following: A. March 1, paid cash for one year premium on insurance contract, $18,000 B. December 31, remaining unexpired balance of insurance, $3,000
In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
ACCRUED INTEREST PAYABLE The following is a list of outstanding notes payable as of December 31, 20--: REQUIRED 1. Compute the accrued interest at the end of the year. 2. Prepare the adjusting entry in the general journal.
Accrued Property Taxes Annual property taxes covering the preceding 12 months are always paid on July 1. Lou Inc. is always assessed $11,000 property taxes. Required: Given this information, determine the adjusting journal entry that Lou must make on December 31.
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.