the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8, it paid in full the annual insurance invoice of $36,000, to cover the following year. The amount charged in the income statement for insurance for the year is $
Q: The prepaid insurance account shows a debit of $5,280, representing thecost of a 2-year fire…
A: Since nothing is mentioned, it is assumed that the requirement of the question is to prepare the…
Q: On July first frilei company purchased a one year insurance policy by paying 4200 dollars prepare…
A: Prepaid expenses: A prepaid expense is a type of asset on the balance sheet that results from a…
Q: On March 1, Year 1, Presco Enterprises paid $1,200 cash for an insurance policy that would provide…
A: Insurance, if paid for future period, is treated as prepaid insurance and it is to be shown in the…
Q: Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense.…
A: Answer Prepaid insurance expenses in beginning of year is considered expenses on Accrual basis in…
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: On April 1, Tenity, Inc. paid $3,300 for an insurance premium on a three-year insurance policy. At…
A: Prepaid insurance = Total insurance paid - Insurance expense for current year. Insurance expense for…
Q: On January 1, Fey Properties paid $18,900 for a three-year insurance premium, with coverage…
A: The insurance expense for the month of January 31 is as follows = 3 × (12…
Q: The company pays $300,000 for an insurance policy that will cover the subsequent year. For each…
A: According to accounting equation, assets equal to sum of liabilities and shareholders equity.
Q: On August 1, 2018, Avonette, Inc., sold equipment and accepted a six-month, 9%, $50,000…
A: Month from August 1, 2018 to December 31, 2018 = 5 months
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: Theta prepares its financial statements for the year to 30 April each year. The company pays rent…
A: We have the following information: Company pays rent for its premises quarterly in advance on 1…
Q: The following items appear on the balance sheet of a company with a one year operating cycle.…
A: Current Liability- These are those liabilities which are required to be paid within a period of 12…
Q: ve's Apples opened for business on January 1, 2021, and paid for two insurance policies effective…
A: Insurance policy is an expenses of business and will be recorded as debit item. All expense of…
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: eptember 1, Lazy A Incorporated paid $2,200 for a one year insurance policy. The journal entry to…
A: Solution: Insurance paid for a year is insuranve paid in advance or prepaid imsurance. This is an…
Q: On January 1st, XYZ Co. prepays $1,500 for one year of prepaid insurance. What is the amount of…
A: Formula: Income statement: All revenues and expenses are shown in income statement. It tells the net…
Q: Use the following information for Problems 30 and 31. On March 15, Calloway, Inc., paid property…
A: Journal: Recording of a business transactions in a chronological order.
Q: On January 1st, XYZ Co. prepays $1,500 for one year of prepaid insurance. What is the amount of…
A: Formula: Monthly insurance expense = Total prepaid insurance / 12 Months
Q: Eddy's statement of profit or loss for his first year of trading to 30 September 2019 showed a…
A: In profit and loss a/c we record only that much of expense which was incurred / accrued for that…
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: Paid 1/1/20 Coverage period 1/1/20—12/31/20 $3,500 Fire, storm, and other casualty insurance:…
A: Accounting refers to the process of documenting all the financial transactions of a company in its…
Q: Theta prepares its financial statements for the year to 30 April each year. The company pays rent…
A: Monthly rent until 30 June 2000 = Total yearly rent / 12 months = P84,000 / 12 months = P7,000…
Q: The prepaid insurance account had a beginning balance of $11,500 and was debited for $18,000 of…
A: A prepaid insurance account represents the amount paid in advance for the insurance expense yet to…
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: The Mazzanti Wholesale Food Company's fiscal year-end is June 30, 2024, for the following…
A: The journal entries are prepared to record the transactions on the regular basis. The adjustment…
Q: The prepaid insurance account had a beginning balance of $5,860 and was debited for $2,520 of…
A:
Q: Cris Laurente Services purchased a 1- year insurance policy on April 1, 2020 for 6,000. The amount…
A: From April 1, 2020 to December 31, 2020 = 9 months So the insurance premium of 6,000 is an expense…
Q: Paul Company has an accounting year ended on 31 October. The company pays rent on its premises…
A: The profit and loss of the financial statement which discuss the financial profits or losses of the…
Q: A one year insurance premium of $4,400 was paid on October 1, 2021 by the Cool Company, for coverage…
A: Insurance expense for the 2021 = total insurance premium paid x no. of month for 2021 / total…
Q: On May 1 of Year 1 Mills Enterprises paid $3,780 cash for an insurance policy that would provide…
A: May 1 Year 1 to Dec. 31 Year 1 = 8 months Insurance expired = $3,780*8/12 Insurance expired = $2,520…
Q: KPL Ltd has a year end of 31 March 2021. During the year it paid £1,600 for rent. At the start of…
A: Amount that charged to the income statement is amount that accrued during the year. Assuming KPL ltd…
Q: insurance expense
A: Number of months expired from the date of payment of premium (July 1) till the date of income…
Q: what is the prepayment in the accounts for the year to 31 December 20X8?
A: As per matching concept revenues and expense that are incurred to generate revenue need to be…
Q: On August 1, 2018 Risky Ventures paid $2,400 for insurance coverage for twelve months of coverage…
A: Prepaid Insurance Amount = 2,400 Period for which insurance expense paid = 12 Months Period Expired…
Q: a. A review of insurance policies showed that P6,800 is unexpired at the year-end. b. An inventory…
A: The adjustment entries are prepared to adjust the revenue and expense for the current period.
Q: Under Edelbert company’s accounting system, all insurance premiums paid are debited to prepaid…
A: Prepaid insurance are in the nature of Current Assets which are adjusted against insurance expenses…
Q: On September 1, Wright Magazine Company receives annual subscriptions totaling $601,500. The first…
A: total months in a year =12
Q: Under Fierce Company’s accounting system, all insurance premiums paid are charged to insurance…
A: Journal: It is the first step of recording financial transactions. It is used to prepare the…
Q: At the beginning of 2009, A company prepaid insurance in the amount of 120,000 for one year. At the…
A: Beginning prepaid insurance balance is 120,000 for one year, it means insurance premium is paid in…
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: 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: 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: At 31 March 20X7, accrued rent payable was £300. During the year to 31 March 20X8, £4,000 cash was…
A: Accrued expenses are those expenses which are incurred in particular accounting period, but payment…
Q: The annual insurance premium for S for the period 1 July 20X3 to 30 June 20X4 was $13,200, which is…
A: statement of profit or loss: All expenses and revenues of particular period are recorded in…
Q: On June 1, Malone Company paid for a one-year insurance policy amounting to P25,200. If Malone…
A: As per the concept , we should debit expense and credit income only related to current period
On the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8, it paid in full
the annual insurance invoice of $36,000, to cover the following year.
The amount charged in the income statement for insurance for the year is $ ........................................
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Gibco Limited has an October 31 year end. On September 30, 2020 Gibco had the following current liabilities listed on its books: Bank credit line........................................... $25,300 Accounts payable........................................ 110,500 CPP, EI and income tax payable.................. 19,620 Unearned revenues.................................... 22,000 During October 2020 Gibco engaged in the following transactions: Oct 1 Paid $12,000 on the credit line with their bank Oct 5 Sold goods for $40,000 on which they had previously received a $10,000 deposit. The balance is due in 30 days. Oct 12 Bought $26,000 of inventory on credit, terms of 30 days. Oct 15 Paid amounts due the Government of Canada for the payroll amounts outstanding from September 30. Oct 20 Paid $97,000 owing to a supplier. Oct 21 Received $5,000 from a client for work that will be performed in January 2021. Oct 21 Sold…As of December 31 of the current year, Fernandez Company has prepared the following informa-tion regarding its liabilities and other obligations: Notes payable, of which $20,000 will be repaid within thenext 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000Interest expense that will result from existing liabilities overthe next 12 months. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,000Lawsuit pending against the company, in which $500,000is claimed in damages. Legal counsel can make no reasonableestimate of the company’s ultimate liability at this time . . . . . . . . . . . . . . . . . . . . 400,00020-year bond issue that matures in two years. The entireamount will be repaid from a bond sinking fund . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000Accrued interest on the 20-year bond issue as of the balancesheet date . . . . . . . . . . . . . . . . . . .…Vera Company purchased a truck from Leen Corp. by issuing a 6-month, 8% note payable for $112,500 on November 1. On December 31, the accrued expense adjusting entry is Interest Expense................... 4,500 Interest Payable............. 4,500 Interest Expense..................... 9,000 Interest Payable.................. 9,000 Interest Expense................................ 18,000 Interest Payable..................... 18,000 Interest Expense...............................1,500 Interest Payable......................... 1,500
- The June 30, 2019, balance sheet of Ram Technologies reports the following: Accounts Receivable…………………………………. $265,000 Allowance for Uncollectible Accounts (Cr)…………. 7,100 At the end of each quarter, RAM estimates uncollectible-account expense to be 2% of credit sales. 4 At the end of the year, RAM ages its accounts receivable. RAM then adjusts the balance in the Allowance for Uncollectible Accounts to correspond to the aging schedule. During the second half of 20X9, RAM completed the following transactions: July 14 Made a compound entry to write off uncollectible accounts: T.J. Dooley, $700; Design Works, $2,400; and S. DeWitt, $100. Sept. 30 Recorded uncollectible-account expense equal to 2% of credit sales of $140,000 Nov. 22 Wrote off accounts receivable as uncollectible: Transnet, $1,300; Webvan, $2,100; and Alpha Group, $700. Dec. 31 Recorded uncollectible-account expense based on the aging of receivables Age of Accounts…Find out the amount of bills matured during the year on the basis ofinformation given below ;Bills payable dishonoured........................ 37,000Closing balance of Bills payable................ 85,000Opening balance of Bills payable................. 70,000Bills payable accepted....... 90,000Cheque dishonoured........ 23,00062. A hospitality company is the maker of an $18,000 note to be paid in quarterlyinstallments of $3,000 each. The first payment is to be made on June 30. How willthe note be represented on the balance sheet for May 31?A. $18,000 long-term liabilityB. $3,000 expense, $15,000 long-term liabilityC. $3,000 expense, $9,000 current liability, $6,000 long-term liabilityD. $12,000 current liability, $6,000 long-term liability
- TJ made a loan of $16,000 to one of the company's employees on April 1, year 1. The one year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1? A. $720 B. $0 C. $240 D. $960A business paid out $12,450 in net wages to its employees. In respect of these wages, the followingamounts were shown in the statement of financial position.$Income tax payable 2,480National Insurance payable – employees' 1,350– employer's 1,500Pension payable for employees' contributions 900Employees' gross wages, before deductions, were ........................................On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance premiums and recorded the funds in Unearned Revenue. Umbrella records insurance revenue on a monthly basis. How much will be in the Unearned Revenue account on November 30, 2021?
- Cee Co.s fiscal year begins April 1. At the beginning of its fiscal year, Cee Co. estimates that it will owe 17,400 in property taxes for the year. On June 1, its property taxes are assessed at 17,000, which it pays immediately. Prepare the related journal entries for April 1, May 1, and June 1. Then compute the monthly property tax expense that Cee Co. would record during June through March.Leek Company receives a $12,000, 3-month, 5% promissory note from Rey Company in settlement of an open accounts receivable. What entry will Leek Company make upon receiving the note? Select one: a. Notes Receivable.............................................. 12,150 Accounts Receivable—Rey Company................ 12,150 b. Notes Receivable............................................................12,000 Interest Receivable......................................... 150 Accounts Receivable—Rey Company............... 12,000 Interest Revenue........................................... 150 c. Notes Receivable.................................................... 12,000 Accounts Receivable—Rey Company............ 12,000 d. Notes Receivable............................................... 12,150 Accounts Receivable—Rey…At the beginning of the year, Laurier Inc. had a balance in its warranty liability account of $ 50000. During the year Laurier Inc. paid warranty costs of $ 62000. At the end of the year, Laurier Inc. estimated that its future warranty liability was $ 60000. How much is Laurier Inc.'s warranty expense for the year? Your Answer: