Prepare journal entries to record the following transactions. Create a T-account for Prepaid Insurance, post any entries that affect the account, and tally the ending balance for the account (assume Prepaid Insurance beginning balance of $9,000). April 1, paid cash for one-year policy, $18,000 December 31, unexpired premiums, $4,500

Prepare journal entries to record the following transactions. Create a T-account for Prepaid Insurance, post any entries that affect the account, and tally the ending balance for the account (assume Prepaid Insurance beginning balance of $9,000). April 1, paid cash for one-year policy, $18,000 December 31, unexpired premiums, $4,500

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11PA: Prepare journal entries to record the following transactions. Create a T-account for Prepaid...

See similar textbooks

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?
Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.
In first of October, Muscat company Paid OMR 12,000 for a one-year insurance policy. The Journal Entry should be: Select one: a. DEBIT Prepaid Insurance OMR 12,000 and CREDIT Cash OMR 12,000 b. DEBIT Insurance expenses OMR 12,000 and CREDIT cash OMR 12,000 c. DEBIT Cash OMR 12,000 and CREDIT Prepaid Insurance OMR 12,000 d. DEBIT Prepaid Insurance OMR 3,000 and CREDIT Cash OMR 3,000 e. No entry—not a transaction
2. Prepare a December 31 balance sheet in proper form for Surety Insurance using the following accounts and amounts: Commissions Revenue Earned.............$40,000Accounts payable..................3,500Accounts receivable............... 5,000M. Bruno, Capital..................103,500Office equipment...................10,000Advertising expense............. 3,200Cash................................... 7,500Land......................................35,000Note payable.......................... 50,000Office supplies........................500Salaries expense....................12,000Salaries payable.....................1,000Building...............................100,000
Under Edelbert company’s accounting system, all insurance premiums paid are debited to prepaid insurance. Information for the year ended December 31, 2018 is as follows:Prepaid Insurance on January 1 200,000Charge to insurance expense 880,000Prepaid insurance on December 31 240,000What was the amount of insurance premium paid in 2018?
On July 1, 200B, a two-year insurance premium amounting to P30,000 was paid in cash and debited in full to Prepaid Insurance by Magadjust Tayo Store. Coverage began on August 1, 200B. What is the necessary adjusting entry on December 31, 200B for Magadjust Tayo Store? Options: DEBIT: Prepaid insurance, P6,250; CREDIT: Insurance expense, P6,250 DEBIT: Prepaid insurance, P23,750; CREDIT: Insurance expense, P23,750 DEBIT: Prepaid insurance, P7,500; CREDIT: Insurance expense, P7,500 DEBIT: Insurance expense, P7,500; CREDIT: Prepaid insurance, P7,500 DEBIT: Insurance expense, P6,250; CREDIT: Prepaid insurance, P6,250
Please answer Requirment 4, 4 & 6 7-5 On September 1, 2021, Amy’s Floral Shop, Inc. paid cash for the following two insurance policies.Insurance Policy #1Type of insurance coverage ................................. Auto and TruckStarting date of the insurance coverage ............... September 1, 2021Period of time coverage is for ............................... 3 monthsTotal cost of coverage paid in advance ................ $525Insurance Policy #2Type of insurance coverage ................................. Business LiabilityStarting date of the insurance coverage ............... September 1, 2021Period of time coverage is for ............................... 4 monthsTotal cost of coverage paid in advance ................ $1,400The company has the accounting policy that all prepaid assets are initially recorded in assetaccounts. The following is a partial list of the accounts in Amy’s General Ledger. These are the only accounts you need for this problem.  Cash Prepaid Insurance…
On April 1, 2018, Solutions Insurance Company sold a one-year insurance policycovering the year ended March 31, 2019. Solutions collected the full $2,700 on April 1, 2018.Solutions made the following journal entry to record the receipt of cash in advance:A112345A B C D E F2,700Cash 2,700Unearned RevenueApr 1Journal EntryDate Accounts Debit CreditNine months have passed, and Solutions has made no adjusting entries. Based on these facts,the adjusting entry needed at December 31, 2018, isA1123456789123456789A B C D E Fa.b.c.d.Unearned RevenueInsurance RevenueInsurance RevenueUnearned RevenueUnearned RevenueInsurance RevenueInsurance RevenueUnearned Revenue2,0252,0256756752,0252,025675675
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 initial journal entry for the purchase of the single insurance policy: DR a) Cashb) Prepaid Insurancec) Insurance Expensed) Accounts Payable a) $2,500b) $3,500c) $6,000 CR a) Cashb) Prepaid Insurancec) Insurance Expensed) Accounts Payable a) $2,500b) $3,500c) $6,000 Make the December 31 adjusting journal entry to bring the balances to correct: DR a) Insurance Expenseb) Prepaid Insurancec) Cashd) Accounts Payable a) $3,500b) 6,000c) $2,500 CR a) Insurance Expenseb) Prepaid Insurancec) Cashd) Accounts Payable a) $3,500b) 6,000c) $2,500
How to adjust and write this on general journal? The prepaid insurance account amounts to $12,000. Of this amount, $8,500 has expired as of December 31.
Bagwis Company has the following information: Prepaid insurance – January 1 1,600,000 Prepaid insurance – December 800,000 Insurance payable decrease by 1,200,000 Insurance payments 4,000,000 How much is the insurance expense under accrual basis? Group of answer choices 3,600,000 4,800,000 3,400,000 4,000,000
On January 1, DogMart Company purchased a two-year liability insurance policy for $34200 cash. The purchase was recorded to Prepaid Insurance. How much would be the January 31 amount recorded to expense (use two decimals):