Nagel co.'s prepaid insurance was $190000 at dec. 31, 2017 and $90000 at dec. 31, 2018 insurance expense was $162000 for 2018

Nagel co.'s prepaid insurance was $190000 at dec. 31, 2017 and $90000 at dec. 31, 2018 insurance expense was $162000 for 2018 and $54000 for 2017 what amount of cash payment for insurance would be reported in nagel's 2018 net cash provided by operating activites, presented on direct basis?

a. $198000

b. $128000

c. $162000

d. $62000

Expert Solution

Insurance expense for 2018	$ 162,000
Add: Prepaid insurance at 31 Dec 2018	$ 90,000
Less: Prepaid insurance at 31 Dec 2017	$ (190,000)
Cash paid for insurance expense	$ 62,000

ANswer is D. $62,000

ekkarill92 answered 1 year ago

Stigler's insurance expense was $54,000 for 2019 and $48,000 for 2018. Prepaid insurance was $34,000 on...

Stigler's insurance expense was $54,000 for 2019 and $48,000 for 2018. Prepaid insurance was $34,000 on Stigler Inc.’s December 31, 2019 balance sheet and $29,000 on their December 31, 2018 balance sheet. How much cash did Stigler pay for insurance during 2019?

Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4....

Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4. Insurance expense was $20,000 for 20X5 and $15,000 for 20X4. What amount of cash disbursements for insurance should be reported in Rory's 20X5 net cash flows from operating activities presented on a direct basis? The answer is $45,000. *how to get $45,000? **how are insurance payment and insurance expense different? It's asking cash disbursements...is it the same as insurance payment or expense? Please help,...

Balance Sheet As at Dec 31 2017 and 2018 Carl’s Jr Restaurants 2017 2018 Current...

Balance Sheet As at Dec 31 2017 and 2018 Carl’s Jr Restaurants 2017 2018 Current Assets: Cash $210,000,000 $215,000,000 Accounts Receivables 355,000,000 310,000,000 Inventory 507,000,000 328,000,000 Total Current Assets $1,072,000,000 $853,000,000 Long-Term Assets: Net Equipment, Furniture, Fixtures $6,085,000,000 $6,527,000,000 Total Assets $7,157,000,000 $7,380,000,000 Current Liabilities: Accounts Payable $207,000,000 $298,000,000 Notes Payable $1,715,000,000 $1,427,000,000 Total Current Liabilities $1,922,000,000 $1,725,000,000 Long-term Liabilities $1,987,000,000 $2,308,000,000 Owners’ Equity: Common stock plus Capital Surplus $1,000,000,000 $1,000,000,000 Retained Earnings 2,248,000,000 ...

Balance Sheets as on 31st Dec 2017 & 31st Dec 2018 31st Dec 2017 31st Dec...

Balance Sheets as on 31st Dec 2017 & 31st Dec 2018 31st Dec 2017 31st Dec 2018 Current Assets: Cash $65,000 $80,000 Accounts Receivables $2,500,000 $4,000,000 Inventory $1,500,000 $2,500,000 Total Current Assets $4,065,000 $6,580,000 Fixed Assets: Buildings $2,000,000 $3,000,000 Furniture & office equipment $1,100,000 $1,400,000 Good Will $6,100,000 $5,700,000 Patents $1,000,000 $1,100,000 Total Fixed Assets $10,200,000 $11,200,000 Total Assets $14,265,000 $17,780,000 Liabilities: Current Liabilities: Accounts Payable $1,200,000 $1,350,000 Notes Payable $500,000 $550,000 Interest Payable $110,000 $125,000 Total Current Liabilities $1,810,000...

This is the stockholders equity section of Leveon James and co. at December 31, 2018: 31-Dec-18...

This is the stockholders equity section of Leveon James and co. at December 31, 2018: 31-Dec-18 31-Dec-19 Common stock, $10 par value, 1,000,000 shares issued & outstanding 10,000,000 10,000,000 Additional paid-in-capital Common stock 3,000,000 Retained Earnings 8,750,000 $21,750,000 The following transactions occurred in 2019: 1-Feb Declared a cash dividend of $.50 per share to common shareholders of record on February 15th payable on March 1st 1-Mar Paid the dividend declared on February 1st 1-Apr Announced a 5 for 1 common...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end of Hanson Company's accounting year. Insurance expense has a $2,000 balance at the same point in time. The following policies are in effect at December 31, 2018: Policy Type Date Acquired Policy Term Total Premium Paid When Acquired Liability 1-31-17 2 years $48,000 Auto 6-30-18 2 years . $9,000 Business interruption . 8-1-18 1 year $840 1. Determine the adjusted balance in prepaid insurance...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end of Hanson Company's accounting year. Insurance expense has a $12,000 balance at the same point in time. The following policies are in effect at December 31, 2018: Policy Date Policy Total Premium Type Acquired Term Paid when acquired Liability 1-31-17 2 years $48,000 Auto 6-30-18 2 years 9,000 Business interruption 8-1-18 1 year 840 1. Determine the adjusted balance in prepaid insurance at December...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end of Hanson Company's accounting year. Insurance expense has an unadjusted $2,000 balance at the same point in time. Some policies that were in effect have expired. Some of those were renewed and some were not. The following policies are in effect at December 31, 2018: Policy Date Policy Total Premium Type Acquired Term Paid when acquired Liability 1-31-17 2 years $48,000 Auto 6-30-18 ...

can you explain how you calculated the insurance expense and prepaid insurance

Insurance of $23,800 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance

Entries to Correct ErrorsThe following errors took place in journalizing and posting transactions:Insurance of $23,800 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. Dividends of $23,000 were recorded as a debit to Wages Expense and a credit to Cash.Journalize the entries to correct the errors. If an amount box does not require an entry, leave it blank.

Question

Nagel co.'s prepaid insurance was $190000 at dec. 31, 2017 and $90000 at dec. 31, 2018 insurance expense was $162000 for 2018

Solutions

Expert Solution

Related Solutions

Stigler's insurance expense was $54,000 for 2019 and $48,000 for 2018. Prepaid insurance was $34,000 on...

Rory Co.'s prepaid insurance was $50,000 at December 31, 20X5 and $25,000 at December 31, 20X4....

Balance Sheet As at Dec 31 2017 and 2018 Carl’s Jr Restaurants 2017 2018 Current...

Balance Sheets as on 31st Dec 2017 & 31st Dec 2018 31st Dec 2017 31st Dec...

This is the stockholders equity section of Leveon James and co. at December 31, 2018: 31-Dec-18...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end...

The prepaid insurance account has an unadjusted balance of $46,000 at December 31, 2018, the end...

can you explain how you calculated the insurance expense and prepaid insurance

Insurance of $23,800 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance