On July 1, 2017, Oriole Co. pays $13,740 to Waterway Insurance Co. for a 3-year insurance...

On July 1, 2017, Oriole Co. pays $13,740 to Waterway Insurance Co. for a 3-year insurance policy. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Waterway Insurance Co. Waterway uses the accounts Unearned Service Revenue and Service Revenue.

Solutions

Expert Solution

Answer :- Journal entries

Date

General journal

Debit ($)

Credit ($)

July 1, 2017

Prepaid insurance A/c Dr.

To Cash A/c

13740

December 31, 2017

Insurance expense A/c Dr.

To Prepaid insurance A/c

2290

(0.50 * 13740 / 3 = $ 2290).

Note :- Six months can also be written as 0.50 i.e., 6 / 12.

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

On July 1, 2017, Riverbed Co. pays $20,160 to Marin Insurance Co. for a 4-year insurance...

On July 1, 2017, Riverbed Co. pays $20,160 to Marin Insurance Co. for a 4-year insurance policy. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Marin Insurance Co. Marin uses the accounts Unearned Service Revenue and Service Revenue I am facing a challenge with my account assignment, May you please help me. Date Account Titles and Explanation Debit Credit July 1 Cash 20160 Unearned service 20160...

On July 1, 2014,Deng Co. pays $13200 to Nance Insurance Co. for 1 year insurance contract....

On July 1, 2014,Deng Co. pays $13200 to Nance Insurance Co. for 1 year insurance contract. Both companies have physical years ending December 31. Journalist the entry on July 1 and the adjusting entry on December 31 for Nance Insurance Co. Nance uses the accounts Unearned Service Revenue and Service Revenue.

on july 1,2019, crane co. pays $18000 to Bramble Insurance Co, for a 4 years insurance...

on july 1,2019, crane co. pays $18000 to Bramble Insurance Co, for a 4 years insurance contract. Both companies have fiscal years ending December 31. journalize and post entry on july 1 and adjusting entry on December 21 for Bramble Insurance Co Bramble uses the account Unearned Service Revenue and service revenue.

Waterway Corp. sells idle machinery to Enyart Company on July 1, 2017, for $46,000. Waterway agrees...

Waterway Corp. sells idle machinery to Enyart Company on July 1, 2017, for $46,000. Waterway agrees to repurchase this equipment from Enyart on June 30, 2018, for a price of $48,760 (an imputed interest rate of 6%). Prepare the journal entry for Waterway for the transfer of the asset to Enyart on July 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the...

Oriole Company paid $25800 on June 1, 2017 for a two-year insurance policy and recorded the...

Oriole Company paid $25800 on June 1, 2017 for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2017 adjusting entry

2. On July 1 of the current year, Glover Mining Co. pays $5,400,000 for land estimated...

2. On July 1 of the current year, Glover Mining Co. pays $5,400,000 for land estimated to contain 7,200,000 tons of recoverable ore. It installs machinery on July 3 costing $864,000 that has an 8 year life and no salvage value and is capable of mining the ore deposit in six years. The company removes and sells 745,000 tons of ore during its first six months of operations ending on December 31. Depreciation of the machinery is in proportion to...

1a. On April 1, 2017, Hughes Corp pays $240,000 for a one-year insurance policy that is...

1a. On April 1, 2017, Hughes Corp pays $240,000 for a one-year insurance policy that is effective immediately and expires one year later on March 31, 2018. Show the journal entry on April 1. 1b. Show the adjusting journal entry that Hughes makes on June 30th the end of the quarter. 1c. If Hughes' accountant forgot to make the above adjusting entry, what is the effect of this omission on the reported financial statements? On Each line, write either Overstated,...

You are called by Tim Duncan of Waterway Co. on July 16 and asked to prepare...

You are called by Tim Duncan of Waterway Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 $ 38,200 Purchases—goods placed in stock July 1–15 80,300 Sales revenue—goods delivered to customers (gross) 124,800 Sales returns—goods returned to stock 4,400 Your client reports that the goods on hand on July...

Oriole Company is the new owner of Oriole’s Computer Services. At the end of July 2017,...

Oriole Company is the new owner of Oriole’s Computer Services. At the end of July 2017, her first month of ownership, Oriole is trying to prepare monthly financial statements. She has the following information for the month. 1. At July 31, Oriole owed employees $1,940 in salaries that the company will pay in August. 2. On July 1, Oriole borrowed $21,000 from a local bank on a 12-year note. The annual interest rate is 8%. 3. Service revenue unrecorded in...

On July 23 of the current year, Dakota Mining Co. pays $8,215,680 for land estimated to...

On July 23 of the current year, Dakota Mining Co. pays $8,215,680 for land estimated to contain 9,336,000 tons of recoverable ore. It installs and pays for machinery costing $1,493,760 on July 25. The company removes and sells 479,250 tons of ore during its first five months of operations ending on December 31. Depreciation of the machinery is in proportion to the mine's depletion as the machinery will be abandoned after the ore is mined. Required: Prepare entries to record...

Subjects