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On January 1, 2020, Power Company purchased a one-year insurance policy for $2,400. When the company closes its books and prepares financial statements at the end of January, what entry should be made regarding this item on January 31, 2020? OA Balance sheet Incme statement Cash flow statement Liabilities SE Expenses +2,400 OR OC OD Assets +2,400 Assets -2.400 -200 -200 Assets +2,400 Balance sheet Assets Liabilities SE -200 Balance sheet Liabilities SE -2600 Revenue -200 Expenses NI Income statement Revenue Expenses NI Income statement +200 -200 -200 Balance sheet Income statement Liabilities SE Revenue Expenses NI Cash flow statement Revenue Expenses NI Revenue Expenses NI +200 Revenue -200 Cash flow statement Expenses NI +2,600 -2,600 Revenue +200 NI -2,400 Cash flow statement Revenue Expenses -200 NI

On January 1, 2020, Power Company purchased a one-year insurance policy for $2,400. When the company closes its books and prepares financial statements at the end of January, what entry should be made regarding this item on January 31, 2020? OA Balance sheet Incme statement Cash flow statement Liabilities SE Expenses +2,400 OR OC OD Assets +2,400 Assets -2.400 -200 -200 Assets +2,400 Balance sheet Assets Liabilities SE -200 Balance sheet Liabilities SE -2600 Revenue -200 Expenses NI Income statement Revenue Expenses NI Income statement +200 -200 -200 Balance sheet Income statement Liabilities SE Revenue Expenses NI Cash flow statement Revenue Expenses NI Revenue Expenses NI +200 Revenue -200 Cash flow statement Expenses NI +2,600 -2,600 Revenue +200 NI -2,400 Cash flow statement Revenue Expenses -200 NI

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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QUERIMIE On January 1, 2020, Power Company purchased a one-year insurance policy for $2,400. When the company closes its books and prepares financial statements at the end of January, what entry should be made regarding this item on January 31, 2020? OA Balance sheet Income statement Liabilities Expenses +2,400 OB OC OD Assets +2,400 Balance sheet Assets Liabilities SE -2.400 -2600 -200 SE -200 -200 Balance sheet Assets Liabilities SE -200 Revenue Balance sheet Assets Liabilities SE Revenue Expenses NI -200 Income statement Revenue Expenses NI Income statement Moving to another question will save this response. NI +200 Income statement Revenue Expenses NI +200 -200 -200 Cash flow statement Expenses +2,400 Revenue Cash flow statement Revenue Cash flow statement Revenue Expenses NI +2,600 -2,600 Expenses +200 NI -2,400 Cash flow statement NI -200 Revenue Expenses NI Question 11 c
Transcribed Image Text:QUERIMIE On January 1, 2020, Power Company purchased a one-year insurance policy for $2,400. When the company closes its books and prepares financial statements at the end of January, what entry should be made regarding this item on January 31, 2020? OA Balance sheet Income statement Liabilities Expenses +2,400 OB OC OD Assets +2,400 Balance sheet Assets Liabilities SE -2.400 -2600 -200 SE -200 -200 Balance sheet Assets Liabilities SE -200 Revenue Balance sheet Assets Liabilities SE Revenue Expenses NI -200 Income statement Revenue Expenses NI Income statement Moving to another question will save this response. NI +200 Income statement Revenue Expenses NI +200 -200 -200 Cash flow statement Expenses +2,400 Revenue Cash flow statement Revenue Cash flow statement Revenue Expenses NI +2,600 -2,600 Expenses +200 NI -2,400 Cash flow statement NI -200 Revenue Expenses NI Question 11 c
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