Financial and Managerial Accounting: Information for Decisions
6th Edition
ISBN: 9780078025761
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 3, Problem 5QS
Prepaid (deferred) expenses adjustments P1
For each separate case below, follow the three-step process for adjusting the prepaid asset account at December 31. Step 1. Determine what the current account balance equals. Step 2. Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Assume no other
- Prepaid Insurance. The Prepaid Insurance account has a $4.700 debit balance to start the year. A review of insurance policies and payments shows that $900 of unexpired insurance year-end.
- Prepaid Insurance. The Prepaid Insurance account has a $5.890 debit balance at the start of the year. A review of insurance policies and payments shows $1.040 of insurance has exp year-end.
- Prepaid Rent. On September 1 of the current year, the company prepaid $ 24,000 for two years of rent for facilities being occupied that day. The company debited Prepaid Rent and Cash for $24.000.
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Adjusting entries for prepaid insurance
Instructions Chart of Accounts
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Instructions
The balance in the prepaid insurance account, before adjustment at the end of the year,
is $18,565. The year end is March 31.
Journalize the March 31 adjusting entry required under each of the following
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expired during the year is $14,135; (b) the amount of unexpired insurance applicable to
future periods is $4,430. Refer to the Chart of Accounts for exact wording of account
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Adjusting entries for prepaid insurance
The balance in the prepaid insurance account, before adjustment at the end of the year, is $21,910. Journalize the adjusting entry required under each of the
following alternatives for determining the amount of the adjustment:
a. The amount of insurance expired during the year is $16,650. If an amount box does not require an entry, leave it blank.
b. The amount of unexpired insurance applicable to future periods is $5,260. If an amount box does not require an entry, leave it blank.
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Adjusting entries for prepaid insurance
The balance in the prepaid insurance account, before adjustment at the end of the year, is $22,500. Journalize the adjusting entry required under
each of the following alternatives for determining the amount of the adjustment:
a. The amount of insurance expired during the year is $18,000. If an amount box does not require an entry, leave it blank.
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b. The amount of unexpired insurance applicable to future periods is $4,500. If an amount box does not require an entry, leave it blank.
Chapter 3 Solutions
Financial and Managerial Accounting: Information for Decisions
Ch. 3 - Prob. 1MCQCh. 3 - Prior to recording adjusting entries, the Supplies...Ch. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - If a company had $ 15,000 in net income for the...Ch. 3 - What is the difference between the cash basis and...Ch. 3 - Why is the accrual basis of accounting generally...Ch. 3 - What type of business is most likely to select a...Ch. 3 - Prob. 4DQCh. 3 - Prob. 5DQ
Ch. 3 - Prob. 6DQCh. 3 - Prob. 7DQCh. 3 - Prob. 8DQCh. 3 - A If a company initially records prepaid expenses...Ch. 3 - Prob. 10DQCh. 3 - Prob. 11DQCh. 3 - Prob. 12DQCh. 3 - Prob. 13DQCh. 3 - Prob. 14DQCh. 3 - Prob. 15DQCh. 3 - Prob. 16DQCh. 3 - Prob. 17DQCh. 3 - Prob. 18DQCh. 3 - Prob. 19DQCh. 3 - Prob. 20DQCh. 3 - Prob. 21DQCh. 3 - Prob. 22DQCh. 3 - Prob. 23DQCh. 3 - Prob. 24DQCh. 3 - Prob. 25DQCh. 3 - Prob. 26DQCh. 3 - Prob. 27DQCh. 3 - Prob. 28DQCh. 3 - Prob. 29DQCh. 3 - Periodic reporting C1 Choose from the following...Ch. 3 - Computing accrual and cash income C1 In its first...Ch. 3 - Identifying accounting adjustments P1 Classify the...Ch. 3 - Prob. 4QSCh. 3 - Prepaid (deferred) expenses adjustments P1 For...Ch. 3 - Prepaid (deferred) expense adjustments P1 For each...Ch. 3 - Prob. 7QSCh. 3 - Prob. 8QSCh. 3 - Prob. 9QSCh. 3 - Prob. 10QSCh. 3 - Prob. 11QSCh. 3 - Prob. 12QSCh. 3 - Prob. 13QSCh. 3 - Prob. 14QSCh. 3 - Recording and analyzing adjusting entries P1...Ch. 3 - Prob. 16QSCh. 3 - Prob. 17QSCh. 3 - Prob. 18QSCh. 3 - Prob. 19QSCh. 3 - A preparing adjusting entries P4 Cal Consulting...Ch. 3 - Preparing closing entries from the ledger P4 The...Ch. 3 - Identifying post-closing accounts P5 Identify...Ch. 3 - identifying the accounting cycle C2 List the...Ch. 3 - Classifying balance sheet items C3 The following...Ch. 3 - Identifying current accounts and computing the...Ch. 3 - Prob. 26QSCh. 3 - Prob. 27QSCh. 3 - Prob. 1ECh. 3 - Exercise 3-2 Adjusting and paying accrued expenses...Ch. 3 - Prob. 3ECh. 3 - Prob. 4ECh. 3 - Prob. 5ECh. 3 - Prob. 6ECh. 3 - Prob. 7ECh. 3 - Prob. 8ECh. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 - Prob. 11ECh. 3 - Prob. 12ECh. 3 - Prob. 13ECh. 3 - Prob. 14ECh. 3 - Prob. 15ECh. 3 - Prob. 1PSACh. 3 - Prob. 2PSACh. 3 - Prob. 3PSACh. 3 - Prob. 4PSACh. 3 - Prob. 5PSACh. 3 - Prob. 6PSACh. 3 - Prob. 7PSACh. 3 - Prob. 8PSACh. 3 - Prob. 1PSBCh. 3 - Prob. 2PSBCh. 3 - Prob. 3PSBCh. 3 - Prob. 4PSBCh. 3 - Prob. 5PSBCh. 3 - Prob. 6PSBCh. 3 - Prob. 7PSBCh. 3 - Prob. 8PSBCh. 3 - Prob. 3SPCh. 3 - Prob. 1GLPCh. 3 - Prob. 2GLPCh. 3 - Prob. 3GLPCh. 3 - Prob. 4GLPCh. 3 - Prob. 5GLPCh. 3 - Prob. 6GLPCh. 3 - Prob. 1BTNCh. 3 - Prob. 2BTNCh. 3 - Prob. 3BTNCh. 3 - Prob. 4BTNCh. 3 - Prob. 5BTNCh. 3 - Prob. 6BTNCh. 3 - Prob. 7BTNCh. 3 - Prob. 8BTNCh. 3 - Prob. 9BTN
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- Hello! I need some help with accounting. I need to jurnalize the adjusting entries. Journalism the adjustments in the order given in the question. General Jurnal Date description. Post debit credit 20-- adjusting entries Mar.31 ______ ______ Mar.31 ______ ______ Mar.31 ______ ______ Mar31 ______ ______ Mar.31 ______ ______ Mar.31 ______ ______ Then I must prepare an income statementarrow_forwardAdjusting entries for prepaid insurance Instructions Chart of Accounts Journal Instructions The balance in the prepaid insurance account, before adjustment at the end of the year, is $18,135. Journalize the March 31 adjusting entry required under each of the following alternatives for determining the amount of the adjustment: (a) the amount of insurance expired during the year is $15,480; (b) the amount of unexpired insurance applicable to future periods is $2,655. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 11 Cash 12 Accounts Receivable 13 Supplies 14 Prepaid Insurance 15 Land 16 Equipment 17…arrow_forwardAdjusting Entries for Prepaid Insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: a. The amount of insurance expired during the year is $20,250. b. The amount of unexpired insurance applicable to future periods is $6,750.arrow_forward
- Adjusting Entries for Prepaid Insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $8,950. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: If an amount box does not require an entry, leave it blank. a. The amount of insurance expired during the year is $6,800. b. The amount of unexpired insurance applicable to future periods is $2,150.arrow_forwardThe balance in the prepaid insurance account, before adjustment at the end of the year, is $14,460. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: If an amount box does not require an entry, leave it blank. a. The amount of insurance expired during the year is $10,990. Accounts Payable x Prepaid Expense X 10,860 x 10,860 X Feedback T Check My Work Set up a Prepaid Insurance T-account. Consider each situation by recalling that prepaid insurance expires and becomes an expense with the passage of time. The insurance expense is the amount needed to arrive at the given ending balance. Complete your adjusting entry by making sure that the entry affects at least one income statement account and one balance sheet account. b. The amount of unexpired insurance applicable to future periods is $3,470.arrow_forwardUNCOLLECTIBLE ACCOUNTSALLOWANCE METHOD Lewis Warehouse used the allowance method to record the following transactions, adjusting entries, and closing entries during the year ended December 31, 20--: Selected accounts and beginning balances on January 1, 20--, are as follows: REQUIRED 1. Open the three selected general ledger accounts. 2. Enter the transactions and the adjusting and closing entries in a general journal (page 6). After each entry, post to the appropriate selected accounts. 3. Determine the net realizable value as of December 31, 20--.arrow_forward
- The balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200, which represents twelve months’ Insurance purchased on December 1. The adjusting entry required on Dec. 31, 2018 is a. debit Prepaid Insurance, P7,200; credit Insurance Expense, P7,200 b. debit Insurance Expense, P600; credit Insurance Payable, P600 c. debit Insurance Expense, P6,600; credit Prepaid Insurance, P6,600 d. debit Prepaid Insurance, P600; credit Insurance Expense, P600 e. debit, Insurance Expense, P600; credit Prepaid Insurance, P600arrow_forwardThe balance in the Prepaid Insurance account before adjustment at the end of the year is P7,200 which represents twelve months insurance purchased on December 1. What is the adjusting entry required on Dec. 31, 2021? debit Prepaid Insurance, P600; credit Insurance Expense, P600. debit Insurance Expense, P600; credit Prepaid Insurance, P600. debit Insurance Expense, P600; credit Insurance Payable, P600. debit Insurance Expense, P6,600; credit Prepaid Insurance, P6,600. debit Prepaid Insurance, P7,200; credit Insurance Expense, P7,200.arrow_forwardAdjustment for Insurance On December 1, a six-month liability insurance policy was purchased for $900. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.) (Balance Sheet)Prepaid Insurance fill in the blank a8cfc50a8015fe0_2 fill in the blank a8cfc50a8015fe0_4 Bal. fill in the blank a8cfc50a8015fe0_5 (Income Statement)Insurance Expense Adj. fill in the blank a8cfc50a8015fe0_6 Page: DATE ACCOUNT TITLE DOC.NO. POST.REF. DEBIT CREDIT 1 20--Dec. 31 fill in the blank 59564e01b03df92_2 fill in the blank 59564e01b03df92_3 1 2 fill in the blank 59564e01b03df92_5 fill in the blank 59564e01b03df92_6 2arrow_forward
- The following adjusting entries were journalized on December 31, 2021. If a reversing entry is needed, journalize the reversing entry on January 1, 2022. Make sure to enter the day for each separate transaction. Date Account Title Doc Date 31 31 31 Account Title Supplies Expense Supplies Interest Receivable Interest Revenue Debit Deferred Insurance Insurance Revenue Credit Debit 520 1,200 965 Credit 520 1,200. 965arrow_forwardWhat is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $18680, and unexpired amounts per analysis of policies of $6100? O Debit Insurance Expense, $12580; Credit Prepaid Insurance, $12580. O Debit Insurance Expense, $6100; Credit Prepaid Insurance, $6100. O Debit Insurance Expense, $18680; Credit Prepaid Insurance, $18680. O Debit Prepaid Insurance, $12580; Credit Insurance Expense, $12580.arrow_forwardesc Reversing Certain adjusting entries made at the end of an accounting period are reversed at the beginning of the following period. Required: Analyze the following four adjusting entries made on December 31, and determine whether a reversing entry is needed. Date Description Debit Credit Reversing entry Reversing entry necessary not necessary Dec. 31 Interest Receivable 1,200 1,200 31 Rent Expense 1,000 O 1,000 31 Interest Expense 31 Supplies Expense Supplies ! Explanation 1 *; F1 Q A Interest Revenue Prepaid Rent. L Interest Payable N @ 2 Check F2 W S #3 X 3 800 520 80 F3 E D 800 520 $ 4 C F4 R O O O X FL Cr dº % 5 F5 T V ? MacBook Air F6 A 6 G Y B & 7 H F7 U 8 N Ⓒ2022 McGraw Hill LLC. All Rights Reser DII DD FB J - ( 9 F9 K M 0 O Carrow_forward
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