Question
In: Accounting
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage...
Harrod Company paid $4,800 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The balance in the prepaid insurance account before adjustment at the end of the year is $4,800 and no adjustments had been made previously. The adjusting entry required on December 31 is:
Debit Prepaid Insurance, $2,400; credit Insurance Expense, $2,400.
Debit Cash, $4,800; Credit Prepaid Insurance, $4,800.
Debit Insurance Expense, $1,200; credit Prepaid Insurance, $1,200.
Debit Prepaid Insurance, $1,200; credit Insurance Expense, $1,200.
Debit Insurance Expense, $2,400; credit Prepaid Insurance, $2,400.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On February 1, 2017, a company paid an $21,600 premium on a 36-month insurance policy for coverage beginning on that date.
On February 1, 2017, a company paid an $21,600 premium on a
36-month insurance policy for coverage beginning on that date.
Refer to that policy and fill in the blanks in the following table.
-Can Not Copy Table-- Table is for Balance Sheet-PrePaid Insurance
And Income statement-Insurance expense
On May 1 a business paid $4,800 for twelve-month liability insurance policy. Also on June 1,...
On May 1 a business paid $4,800 for twelve-month liability
insurance policy. Also on June 1, the same business entered into a
twelve-month rental contract for equipment for $12,000. Determine
the following amounts: (a) prepaid insurance as of May 31, (b)
prepaid rent as of June 30 (c) insurance expense for May and rent
expense for June.
(a)
(b)
(c)
There was a $1,500 balance in the supplies account at the
beginning of the period. During the period, the supplies...
WidgetMakers LLC started business January, 01, 2010. They paid a $6,000 premium for insurance coverage on...
WidgetMakers LLC started business January, 01, 2010. They paid a
$6,000 premium for insurance coverage on their inventory. The
coverage expires June 01, 2010. At this time they renew for the
remainder of the year by paying an additional premium of $7,700.
What is the quarterly insurance expense that WidgetMakers should
report for the period ending June 30,2010. Please explain to me how
to do this. why do we multiply 6000 by 2 for april and may if it
starts...
On March 1, Taylor Company paid $19,200 for two years of insurance in advance. Required: 1....
On March 1, Taylor Company paid $19,200 for two years of
insurance in advance.
Required: 1. How much will be expensed by the end of the
calendar year?
2. How much will be in the Prepaid Insurance account at the end
of the year, after the adjusting entries have been prepared and
posted? 1. Amount expensed : 2. Amount in the Prepaid Insurance
account :
On July 1 of the current year, Uber paid a premium in advance on a one-year...
On July 1 of the current year, Uber paid a premium in advance on
a one-year insurance policy on equipment in the amount of $72,000.
At the time, the full amount was recorded as prepaid insurance. On
December 31, Uber would be required to record an adjusting entry
that would include which of the following:
A. $6,000 Increase to insurance expense
B . $6,000 decrease to prepaid insurance
C. $12,000 increase to insurance expense
D. $12,000 decrease to prepaid insurance
On May 1, 2015, the company paid $17,400 to renew it's only comprehensive insurance coverage for...
On May 1, 2015, the company paid $17,400 to renew it's only
comprehensive insurance coverage for one year. The premium on the
previous 1 year policy, which expired on April 30, 2015, was
$15,600. The company's policy is to record all payments of
insurance to an expense account when paid. Prepare the required
adjusting entry on 12/31/15 related to insurance.
On July 1, a company paid the $1,200 premium on a one-year insurance policy with benefits...
On July 1, a company paid the $1,200 premium on a one-year
insurance policy with benefits beginning on that date. What will be
the insurance expense on the annual income statement for the first
year ended December 31?
Multiple Choice
$500.
$600.
$300.
$1,200.
$900.
On April 1, a company paid the $1,800 premium on a three-year insurance policy with benefits...
On April 1, a company paid the $1,800 premium on a three-year
insurance policy with benefits beginning on that date. What amount
of the insurance expense will be reported on the annual income
statement for the year ended December 31?
a. $1,350.00.
b. $450.00.
c. $600.00.
d. $1,800.00.
e. $50.00.
On August 1, a company paid the $2,400 premium on a one-year insurance policy with benefits...
On August 1, a company paid the $2,400 premium on a one-year
insurance policy with benefits beginning on that date. What will
the balance be in the Prepaid Insurance account on the Balance
Sheet for the current year ended December 31?
Select one:
A. $1,000.
B. $2,400.
C. $1,400.
D. $400.
E. $1,200.
A company paid the $1,350 premium on a three-year insurance policy on April 1, 2020. The...
A company paid the $1,350 premium on a three-year insurance
policy on April 1, 2020. The policy gave protection beginning on
that date. How many dollars of the premium will appear as an
expense on the calendar year 2020 income statement assuming the
accrual basis of accounting? Assuming the cash basis of
accounting?
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