FUNDAMENTALS OF FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781259684234
Author: PHILLIPS
Publisher: MCG/CREATE
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 9MC
Assume the balance in Prepaid Insurance is $2,500 but it should be $1,500. The
- a. Debit to Prepaid Insurance for $1.000.
- b. Credit to Insurance Expense for $1,000.
- c. Debit to Insurance Expense for $1,000.
- d. Debit to Insurance Expense for $1,500.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Assume the balance in Prepaid Insurance is $2,500 butit should be $1,500. The adjusting journal entry shouldinclude which of the following?a. Debit to Prepaid Insurance for $1,000.b. Credit to Insurance Expense for $1,000.c. Debit to Insurance Expense for $1,000.d. Debit to Insurance Expense for $1,500.
At the end of the current year, the prepaid insurance account showed a debit the balance of ₱5,000; the balance at the beginning of the year was ₱6,000, and during the year the insurance premiums paid amounted to ₱8,000. Assuming insurance premium payments are initially entered in the prepaid insurance account, the adjusting entry at the end of the year would include:a. debit prepaid insurance ₱9,000b. credit prepaid insurance ₱1,000c. debit insurance expense ₱7,000d. debit insurance expense ₱9,000
PLEASE HELP ASAP!
Prepaid insurance has an ending balance of P2,300. During the Period, insurance in the amount of P1,200 expired. The adjusting entry would contain a debit to:
a. Insurance expense for P1,100.
b. Unexpired insurance for P1,100.
c. Insurance expense for P1,200.
d. Prepaid insurance for P1,200.
Chapter 4 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING
Ch. 4 - Prob. 1QCh. 4 - Explain the relationships between adjustments and...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain the differences between depreciation...Ch. 4 - What is an adjusted trial balance? What is its...Ch. 4 - On December 31, a company makes a 59,000 payment...Ch. 4 - Using the information in question 8, determine the...Ch. 4 - Using the information in question 8, prepare the...
Ch. 4 - What is the equation for each of the following...Ch. 4 - Prob. 12QCh. 4 - What is the purpose of closing journal entries?Ch. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - What is a post-closing trial balance? Is it a...Ch. 4 - The owner of a local business complains that the...Ch. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - When a concert promotions company collects cash...Ch. 4 - On December 31, an adjustments made to reduce...Ch. 4 - An adjusting journal entry to recognize accrued...Ch. 4 - Prob. 6MCCh. 4 - Company A has owned a building for several years....Ch. 4 - Which of the following trial balances is used as a...Ch. 4 - Assume the balance in Prepaid Insurance is 2,500...Ch. 4 - Assume a company receives a bill for 10,000 for...Ch. 4 - Prob. 1MECh. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Matching Transactions with Type of Adjustment...Ch. 4 - Recording Adjusting Journal Entries Using the...Ch. 4 - Determine Accounting Equation Effects of Deferral...Ch. 4 - Prob. 6MECh. 4 - Determining Accounting Equation Effects of Accrual...Ch. 4 - Recording Adjusting Journal Entries Using be...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral and Accrual...Ch. 4 - Reporting Adjusted Account Balances Indicate...Ch. 4 - Preparing an Adjusted Trial Balance Macro Company...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting a Statement of Retained Earnings Refer...Ch. 4 - Prob. 16MECh. 4 - Recording Closing Journal Entries Refer to the...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Prob. 20MECh. 4 - Prob. 21MECh. 4 - Prob. 22MECh. 4 - Prob. 23MECh. 4 - Prob. 24MECh. 4 - Prob. 25MECh. 4 - Prob. 26MECh. 4 - Prob. 1ECh. 4 - Identifying Adjustments and Preparing Financial...Ch. 4 - Prob. 3ECh. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Recording Adjusting Journal Entries Refer to E4-6....Ch. 4 - Recording Typical Adjusting Journal Entries...Ch. 4 - Determining Accounting Equation Effects of Typical...Ch. 4 - Determining Adjusted Income Statement Account...Ch. 4 - Reporting Depreciation The adjusted trial balance...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Analyzing the Effects of Adjusting Journal Entries...Ch. 4 - Reporting an Adjusted Income Statement Dyer, Inc.,...Ch. 4 - Recording Adjusting Entries and Preparing an...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Prob. 18ECh. 4 - Analyzing, Recording, and Summarizing Business...Ch. 4 - Preparing Adjusting Entries, an Adjusted Trial...Ch. 4 - Preparing an Adjusted Trial Balance, Closing...Ch. 4 - Analyzing and Recording Adjusting Journal Entries...Ch. 4 - Prob. 3CPCh. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Analyzing and Recording Adjusting Journal Entries...Ch. 4 - Prob. 3PACh. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Recording Adjusting Journal Entries Cactus...Ch. 4 - Determining Accounting Equation Effects of...Ch. 4 - Identifying and Preparing Adjusting Journal...Ch. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 2COPCh. 4 - Recording Transactions (Including Adjusting...Ch. 4 - From Recording Transactions (Including Adjusting...Ch. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 6COPCh. 4 - Finding Financial Information Refer to the...Ch. 4 - Prob. 2SDCCh. 4 - Ethical Decision Making: A Mini-Case Assume you...Ch. 4 - Adjusting the Accounting Records Assume it is now...
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
- ANALY SIS OF ADJUSTING ENTRY FOR INSURANCE Analyze each situation and indicate the correct dollar amount for the adjusting entry. 1. Amount of insurance expired (used) is 830. 2. Amount of unexpired (remaining) insurance is 340.arrow_forwardReviewing insurance policies revealed that a single policy was purchased on August 1, for one years 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: A. Make the December 31 adjusting journal entry to bring the balances to correct. B. Show the impact that these transactions had.arrow_forwardReviewing 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.arrow_forward
- 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). A. April 1, paid cash for one-year policy, $18,000 B. December 31, unexpired premiums, $4,500arrow_forwardwhich one is right. Insurance of $3,600 was paid on June 1, 2019 for sighteen months. The journal entry recorded for payment of insurance on June 1, 2019 was (i)Debit prepaid insurance $3,600, credit cash $3,600 (ii)Debit insurance expense $600, credit prepaid insurance $600 (iii)Debit prepaid insurance expense $3,600, credit cash $3,600 (iv)Debit insurance expense $3,600, credit prepaid insurance $3,600arrow_forwardUse the following account T-balances (assume normal balances) and correct balance information to make the December 31 adjusting journal entries. T-Account Balance Correct Balance Prepaid Insurance $26,000 $14,500 Salaries Payable $5,500 $6,200 Unearned Rental Revenue $8,000 $1,600 Supplies $8,500 $2,600 Interest Payable $2,400 $2,000 Accumulated Depreciation $24,000 $26,500 Prepaid Insurance: DR [ Select ] ["Prepaid Insurance", "Accounts Payable", "Insurance Expense", "Cash"] [ Select ] ["$14,500", "$11,500", "$26,000"] CR [ Select ] ["Cash", "Prepaid Insurance", "Insurance Expense", "Accounts Payable"] [ Select ] ["$14,500", "$26,000", "$11,500"] Salaries Payable: DR…arrow_forward
- What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment, $15,400, and unexpired amounts per analysis of policies of $5,000? Select one: a. Debit Insurance Expense, $10,400; Credit Prepaid Insurance, $10,400. b. Debit Insurance Expense, $5,000; Credit Prepaid Insurance, $5,000. c. Debit Insurance Expense, $15,400; Credit Prepaid Insurance, $15,400. d. Debit Prepaid Insurance, $10,400; Credit Insurance Expense, $10,400.arrow_forwardOn 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, P6,250arrow_forwardWhich of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $12,177 and unexpired insurance of $6,023, for the fiscal year ending on April 30? a.debit Prepaid Insurance, $6,154; credit Insurance Expense, $6,154 b.debit Prepaid Insurance, $12,177; credit Insurance Expense, $12,177 c.debit Insurance Expense, $12,177; credit Prepaid Insurance, $12,177 d.debit Insurance Expense, $6,154; credit Prepaid Insurance, $6,154arrow_forward
- Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,337 and unexpired insurance of $5,149, for the fiscal year ending on April 30? a.) debit Prepaid Insurance, $9,188; credit Insurance Expense, $9,188 b.) debit Prepaid Insurance, $14,337; credit Insurance Expense, $14,337 c.) debit Insurance Expense, $9,188; credit Prepaid Insurance, $9,188 d.) debit Insurance Expense, $14,337; credit Prepaid Insurance, $14,337arrow_forwardThe following are account balances of Grameen Corporation: Account Title Amount in Unadjusted Trial Balance Balance after Adjustment Interest Receivable $ -0- $100 Prepaid Insurance 1,500 700 Interest Payable -0- 80 Salaries Payable -0- 450 Unearned Rent 500 200 Required: 1. Enter the unadjusted balance for each account in the following 2. Ledger accounts: Interest Receivable, Prepaid Insurance, Interest Payable, Salaries Payable, Unearned Rent, Interest Earned, Rent Earned, Insurance Expense, Interest Expense, and Salaries Expense. 3. Do the adjusting entry that must have been recorded for each account from the following report. 4. Post these adjusting entries and agree ending balances in each ledger to the adjusted balances above. 5. Identify revenue and expense amounts for the period.arrow_forwardThe balance in the prepaid insurance account before adjustment on December 31, 2007 is $5,000. The amount of expired insurance is $2,000. What account should be debited in the journal (1) and for what amount to record the adjusting entry for insurance based on this information? JOURNAL Page 25 date description p.ref. debit CREDIT Adjusting Entries 12/31 (1) ? (2) ? Group of answer choices Insurance Expense $2,000 Insurance Expense $3,000 Prepaid Insurance $3,000 Prepaid Insurance $2,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY