INTERMEDIATE ACCOUNTING(EBOOK-W/WILEY+)
17th Edition
ISBN: 9781119614142
Author: Kieso
Publisher: WILEY
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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?
AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it was issued on January 1, 2019,
How much is the earned portion for the month ended January 31, 2019? How much is the earned portion for the month ended December 31, 2019? How much is the unearned portion for the month ended January 31, 2019? How much is the unearned portion for the month ended December 31, 2019? How much is the provision for unearned premium on December 31, 2019?
On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%.
How much is the amount due from ceding company (book of reinsurer)? How much is the amount of commission income recognized by cedant?
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- Windsor, Inc. borrows $67,200 from Wildhorse Co. on July 1, 2021 signing a 4%, one-year note payable. Interest is to be paid at maturity. Prepare journal entry for Windsor, Inc. to record the receipt of the proceeds of the note. Prepare journal entry for Windsor, Inc. to record the accrued interest at December 31, assuming adjusting entries are made only at year end. Prepare journal entry for Windsor, Inc. to record the payment of the note at maturity.arrow_forwardBill's Barber shop signed a one-year 7% bak loan payable in the amount of 5,000 on April 1, 2022.Interest is due at maturity.The adjusting journal entry on December 31, 2022, assuming adjusting entries were not previously made, would consist ofarrow_forwardOn July 1, 2021, Guarin Co. obtained fire insurance for a three-year period at an annual premium of P24,000 payable on July 1 of each year. The first premium payment was made on July 1, 2021. On October 1, 2021, Guarin paid P8,000 for real estate taxes to cover the calendar year 2022. This prepayment was made to obtain a discount. In its December 31, 2021 statement of financial position, how much should Guarin report total prepaid expenses? On April 1, 2021, DG Corporation purchased an equipment with cost of P150,000. The company estimate that it has a useful life of five years with a residual value of P25,000 at the end of its economic life. On December 31, 2021, how much will be the depreciation to be by the company assuming the firm employs the straight-line method? On January 1, 2021, the balance of supplies account is P12,500. During the year, the total supplies purchased amounted to P50,000 initially recorded as an asset. On December 31, 2021, the total unused supplies amounted…arrow_forward
- On July 1, 2022, Sheridan Company pays $18,500 to Wildhorse Co. for a 2-year insurance contract. Both companies have fiscal years ending December 31.arrow_forwardOn July 1, 2022, Blossom Company pays $22,500 to Ivanhoe Company for a 1-year insurance contract. Both companies have fiscal years ending December 31. See image attachedarrow_forwardOn October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis (December 31 as fiscal year end), how much interest expense should be reported in the 2020 income statement? Select one: a. $2,000. b. $4,000. c. $1,000. d. $3,000.arrow_forward
- Midshipmen Company borrows $11,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2022. Required: 1.&2. Record the necessary entries in the Journal Entry Worksheet below. 3. Calculate the 2021 year-end adjusted balances of Interest Receivable and Interest Revenue (assuming the balance of Interest Receivable at the beginning of the year is $0).arrow_forwardMilner Family Importers sold goods to Tung Decorators for $30,000 on November 1, 2020, accepting Tung’s $30,000, 6-month, 6% note. Prepare Milner’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest.arrow_forwardOn July 1, 2022, Sandhill Co. pays $23,000 to Blossom Company for a 1-year insurance contract. Both companies have fiscal years ending December 31.arrow_forward
- On December 1, 2021, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year, 10% note. The face amount is due at the end of the third year, while annual interest is due each December 1. Required: 1. Record the acceptance of the note on December 1, 2021. 2. Record the interest collected on December 1 for 2022 and 2023, and the adjustment for interest revenue on December 31 for 2021, 2022, and 2023. 3. Record the cash collection on December 1, 2024.arrow_forwardOn 1/4/2021, Europa Insurance Limited entered into an insurance contract with a customer who paid the annual premium of $300,000 on that date. State, to the nearest whole dollar, the amount Europa Insurance Ltd would report as a liability at 30 June 2021.arrow_forwardOn November 1, 2021, Dual Systems borrows $290,000 to expand operations. Dual Systems signs a six-month, 9% promissory note. Interest is payable at maturity. Dual System's year-end is December 31. 1., 2. & 3. Record the following transactions for the note payable by Dual Systems. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) Record the issuance of the note by Dual Systems. Date General Journal Debit Credit Nov 01, 2021 Record the appropriate adjusting entry for the note by Dual Systems on December 31, 2021. Date General Journal Debit Credit Dec 31, 2021 Record the payment of the note by Dual Systems at maturity on April 30,…arrow_forward
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