Question

In: Accounting

Prepaid and accrued expenses: Determine whether there are any prepaid and/or accrued expenses related to insurance...

Prepaid and accrued expenses:

Determine whether there are any prepaid and/or accrued expenses related to insurance and/or wages for the year ending 30 June 2019. If there are any, calculate the amount. Include all workings

Insurance:

Insurance is now $1,200 per calendar month and is paid in advance on the 21st day of each month. So, for example, GreenEarth pays $1,200 insurance on 21 March 2019 for the period from 22 March 2019 to 21 April 2019. The insurance increased from $1,000 per calendar month from 21 January 2019.

Wages:
Shop staff work Monday to Saturday and wages are usually $8,000 per fortnight and are paid in arrears. The last wages payment for the year was processed on Thursday 27 June 2019 and related to the fortnightly pay period which ended on Friday 21 June.

Solutions

Expert Solution


Related Solutions

What is the difference between accrued expenses compared to prepaid expenses?
What is the difference between accrued expenses compared to prepaid expenses?
determine the deductibility of employee and employment related expenses. What are the criteria that determine whether...
determine the deductibility of employee and employment related expenses. What are the criteria that determine whether you are an employee or an independent contractor? Why is this important from a tax perspective? How does this affect what can be deducted or not? Does this limit the deductibility of certain business related expenses? Provide examples.
review this list of the four types of adjustments: Prepaid Expense, Unearned Revenue, Accrued Revenue, Accrued...
review this list of the four types of adjustments: Prepaid Expense, Unearned Revenue, Accrued Revenue, Accrued Expense Then, follow these steps to participate in the discussion forum: Please select one type of adjustment. Define the term giving a detailed explanation. Provide a specific adjusting journal entry and explain it.
Classify each account and State the normal ending balance • Prepaid Insurance • Selling Expenses •...
Classify each account and State the normal ending balance • Prepaid Insurance • Selling Expenses • Sales Revenue • Accounts Receivable • Accounts Payable • Retained Earnings • Land • Unearned Rent • Building and Equipment • Interest Payable • Inventory • Income Tax Payable Income Tax Expense Cash Notes payable Accumulated Depreciation Common Stock Administrative Expenses Dividends Cost of Goods Sold Rent Revenue Salaries Payable Allowance for Doubtful Accounts Additional Paid-in Capital
When property is sold to a related party, the holding period used to determine whether any...
When property is sold to a related party, the holding period used to determine whether any subsequent gains or losses are short-term or long-term depends on the holding periods of both the seller and the purchaser. True or False
Indicate whether each of the following items increases or decreases cash flow. Decrease in accrued expenses...
Indicate whether each of the following items increases or decreases cash flow. Decrease in accrued expenses Dividend payment Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in investments Depreciation expense Decrease in notes payable Decrease in accounts receivable Increase in notes receivable Increase in bonds payable Increase in Plant and equipment (gross) Increase in common stock Increase in preferred stock Decrease in income tax payable
Limelight Company records these journal entries: Prepaid insurance expired $53 Accrued rent expense $28 Salaries previously...
Limelight Company records these journal entries: Prepaid insurance expired $53 Accrued rent expense $28 Salaries previously accrued are paid $27 Common stock is issued for cash $35 Required for Section 2: Indicate the net effect of these journal entries (i.e., combined effect of all four journal entries) on the following items. Indicate the dollar amount of the net effect and the direction of the net effect. (Example: $13 Increase, or $8 Decrease, or No Effect.) Hint: Prepare the journal entries....
Limelight Company records these journal entries: Prepaid insurance expired $53 Accrued rent expense $28 Salaries previously...
Limelight Company records these journal entries: Prepaid insurance expired $53 Accrued rent expense $28 Salaries previously accrued are paid $27 Common stock is issued for cash $35 Required for Section 2: Indicate the net effect of these journal entries (i.e., combined effect of all four journal entries) on the following items. Indicate the dollar amount of the net effect and the direction of the net effect. (Example: $13 Increase, or $8 Decrease, or No Effect.) Hint: Prepare the journal entries....
Which of the following statements related to the balance sheet account ‘Prepaid Insurance’ are correct? Select...
Which of the following statements related to the balance sheet account ‘Prepaid Insurance’ are correct? Select as many as you think are true. Select one or more: Current tax liability will be higher if more insurance is paid in advance than expensed during the year. 1.Balance day adjustments recognise the amount of prepaid insurance paid during the period. 2.Represents a tax asset in the future. 3.If no insurance is paid in a period, there is no tax deduction. 4.Represents a...
In 175 words or more give some common examples of accrued revenue and accrued expenses that...
In 175 words or more give some common examples of accrued revenue and accrued expenses that may occur in a business. Discuss why they arise, how they are recorded, and why it is necessary to record them.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT