INTERMEDIATE ACCTG. LL-W/ACCESS
17th Edition
ISBN: 9781119663133
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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- 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
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