On May 1 of Year 1 Mills Enterprises paid $3,780 cash for an insurance policy that would provide protection for a one year term. The company’s fiscal closing date is December 31. Based on this information, the amount of  prepaid insurance appearing on the Year 1 Balance Sheet would be

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 March 1, 2020 Delly Corporation received $60,000 in advance from Pam Company for services to be…

A: Amount received in advance for which service has yet to be provided in the next three months is…

Q: A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day.…

A: An adjusting journal entry is a section in an organization's overall record that happens toward the…

Q: Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $3,840 and…

A: Given: Price of the policy = $ 3,840

Q: On January 1 of its first month of business, Bags Bunny, Inc., paid S500,000 for four months of rent…

A: Solution As per the accrual basis of accounting the expenses that have been incurred in the current…

Q: Packer Wings Company received an advance payment of $144,000 for a consulting contract during the…

A: Unearned revenue, often recognized as deferred revenue, is money collected by a corporation from a…

Q: On July 1, 2017, Crowe Co. pays $15,000 to Zubin Insurance Co. for a 3-year insurance policy. Both…

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

Q: An insurance company received advance payments of $12,000 from clients during the current year. At…

A: In the beginning when cash is received ,the journal entry will be Cash A/c 12000   Unearned…

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: he end of the year, the company records an adjusting entry to accrue $125,000 of wages owed to its…

A: The accrued wages are yet to be paid at the end of the year . The wage expense has been incurred but…

Q: On May 1, 2021, Sayed Corporation received $80,000 in advance from Chantel Company for services to…

A: Advance Income in Quarterly Financial statements :       The advance income means the income…

Q: Shown below are three independent situations: a.The Prepaid Insurance account had a debit balance…

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

Q: Brokeback Towing Company is at the end of its accounting year, December 31, 2021. The following data…

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

Q: On July 1, 2017, Ivanhoe Company pays $13,000 to Sunland Company for a 1-year insurance contract.…

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

Q: On May 1 of the current year, a two-year insurance policy was purchased for $24,000 with coverage to…

A: Prepaid expense: Prepaid expense means future expenses which are paid in advance. Initially, Prepaid…

Q: 7. On December 1, Year 1, Jack's Snow Removal Company received $10,500 of cash in advance from a…

A: Solution:- Introduction:- On December 1, year 1 cash $10,500 was received in advance for services to…

Q: Iginla Inc. has a fiscal year end of December 31, 2024. Below are transactions that occurred during…

A: Adjusting entries are those entries which are passed at the end of accounting period to accurately…

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: 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: At the end of the year, Tesla owes employees of $16,000. These salaries will be paid in the…

A: Answer) Journal Entry Account Titles and Explanation  Debit  Credit Salaries Expense…

Q: On January 1 of its first month of business, Bags Bunny, Inc., paid $500,000 for four months of rent…

A: Advance rent is the rent paid in advance for the future period of time. This rent will not be shown…

Q: On December 31, Year 1, a company signed a one-year contract to provide services to a particular…

A: Accrual basis: It is one of the methods of basis of accounting that records the transactions basing…

Q: Brokeback Towing Company is at the end of its accounting year, December 31, 2021. The following data…

A: The adjustment entries are prepared at year end to adjust the revenue and expenses of the current…

Q: A business pays weekly salaries of P200,000 on Friday for five-day week ending on that day. If  the…

A: 5 days salaries expense = P200,000   Monday to Wednesday = 3 days 3 days salaries expense =…

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: At the end of the year, Tesla owes employees of $16,000. These salaries will be paid in the…

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

Q: Fun Inc. purchased a truck from Phillips Co. by issuing a 3-month, 9% note payable for P50,000 on…

A: From November 1 to December 31 = 2 months Interest expense for 2 months = P50,000 x 9% x 2/12 = P750

Q: The adjusting entry necessary at the end of the fiscal period ending on the second Wednesday of the…

A: It is said that it is paid every other Friday with 10 day period. Therefore, 2 weeks from Monday to…

Q: Hershey company purchased one year insurance policy on August 1st and recorded the $4,200 premium to…

A: Insurance expense for the year ended  December 31 = Total premium paid x no. of months/ 12  months =…

Q: On September 1, Year 1, Zelda Company collected $120,000 cash for services to be provided for one…

A: Given, Cash collected for the services to be provided in one year = $120,000 The fiscal year of the…

Q: the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8,…

A: Amt of insurance exp charged to profit loss = Opening prepaid expense amortized + annual insurance…

Q: On December 1, 20Y4, Beta Corporation pays $60,000 for a property and casualty insurance policy that…

A: The question is related to Ratio Analysis. The Current Ratio is calculated with the help of…

Q: insurance expense

A: Number of months expired from the date of payment of premium (July 1) till the date of income…

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 January 1 a company purchased a five-year insurance policy for $1,800 with coverage starting…

A: Solution: Insurance expense for first year = 1,800 / 5 = $360

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: Brokeback Towing Company is at the end of its accounting year, December 31, 2021. The following data…

A: Working on given points : 1. Insurance expense = $ 820 * 6 /24 = $ 205 2. Supplies expense = $ 1220…

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: For each separate case below, follow the three-step process for adjusting the accrued expense…

A: Journal entries: It is the duty of the accountant to record and summarize business economic and non…

Q: Allen Company received $12,000 cash from Gerry Corporation for cleaning services that Allen agrees…

A: Date Particulars Debit Amount Credit Amount June 1, Year 1 Bank A/c ......................Dr…

Q: Donovan Consulting became a public company on March 1, 2022, Below is its trial balance before…

A: 1. Income Statement 2. Balance Sheet   The first statement shows the income earned and loss incurred…

Q: On January 1, DogMart Company purchased a two-year liability insurance policy for $10500 cash. The…

A: Prepaid expense: Prepaid expense means future expenses which are paid in advance. Initially, Prepaid…

Q: At 31 December 20X5 the following require inclusion in a company's financial statements: On 1…

A: Interest on loan=Loan amount×Rate=$12,000×2%=$240

Q: On April 1, 2022, Lansing Corporation opened for business and paid 600 in insurance to cover the…

A: Prepaid expenses are in the nature of current assets which will bring economic benefits to the…

Q: On July 1, 2022, Sheridan Company pays $12,500 to Oriole Company for a 2-year insurance contract.…

A: Date Accounts title and explanation Debit ($) Credit ($) 1-Jul-22 Prepaid insurance  $12,500…

Q: Assume that on February 1, Procter & Gamble (P&G) paid $720,000 in advance for 2 years’…

A: Journal Entries means a record of all business transactions in the accounting books of the business.…

Q: On March 31, a company with a June 30 fiscal year-end pays $3,600,000 to an insurance company for a…

A: Prepaid expenses are nothing but future expenses, for which payment has been made in advance.

Q: A company has a fiscal year-end of Dec. 31:  (1) On Oct. 1, $12,000 was paid for a one-year fire…

A: Journal: Recording of a business transactions in a chronological order.

Q: The following data relate to the accounts of Wildhorse Company. Unpaid salaries and wages at year…

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…