On June 1st, 2017 Cougar Corp pays for 3-years of prepaid insurance by paying $3,600. What...

Expert Solution

On January 1, 2020, the balance in Todd Co's "Prepaid Insurance" account was $3,600. At the...

Prepaid Insurance—Annual Adjustments On April 1, 2017, Gitter Corp. purchases a 24-month property insurance policy for...

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

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Depreciation on the company's equipment for 2017 is computed to be $15,000. The Prepaid Insurance account...

Depreciation on the company's equipment for 2017 is computed to be $12,000. The Prepaid Insurance account...

1. Depreciation on the company's equipment for 2017 is computed to be $16,000. The Prepaid Insurance...

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On April 1st. (X) Co. the trial balance shows the following: Prepaid Insurance 4,000 Equipment 20,000...

The Aaron Corp purchased a new computer system on June 11, 2017, for $680,000. What is...

Question

On June 1st, 2017 Cougar Corp pays for 3-years of prepaid insurance by paying $3,600. What would be the amound of prepaid insurance listed under current assets on Cougar Corp's 2017 Balance Sheet?

$700

$2,900

$1,200

$1,700

ekkarill92 answered 2 years ago

On January 1, 2020, the balance in Todd Co's "Prepaid Insurance" account was $3,600. At the December 31 year end, the balance was $1,200. In Todd's Cash Flow Statement for the year ended 12/31/2020, the net $2,400 net decrease will be A Subtracted from Net Income in determining net cash provided by operating activities B Reported as a cash inflow from financing activities C Reported as a cash outflow from financing activities D Added to Net Income in determining net...

Prepaid Insurance—Annual Adjustments On April 1, 2017, Gitter Corp. purchases a 24-month property insurance policy for $79,200. The policy is effective immediately. Assume that Gitter prepares adjustments only once a year, on December 31. Required: 1. Compute the monthly cost of the insurance policy. $per month 2. Identify and analyze the transaction to record the purchase of the policy on April 1, 2017. Activity Operating Accounts Prepaid Insurance Increase, Cash Decrease Statement(s) Balance Sheet only How does this entry affect...

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,...

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.

Depreciation on the company's equipment for 2017 is computed to be $15,000. The Prepaid Insurance account had a $8,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,080 of unexpired insurance coverage remains. The Office Supplies account had a $370 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed $437...

Depreciation on the company's equipment for 2017 is computed to be $12,000. The Prepaid Insurance account had a $8,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,250 of unexpired insurance coverage remains. The Office Supplies account had a $520 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed $614...

1. Depreciation on the company's equipment for 2017 is computed to be $16,000. The Prepaid Insurance account had a $7,000 debit balance at December 31, 2017, before adjusting for the costs of any expired coverage. An analysis of the company’s insurance policies showed that $1,710 of unexpired insurance coverage remains. The Office Supplies account had a $320 debit balance on December 31, 2016; and $2,680 of office supplies were purchased during the year. The December 31, 2017, physical count showed...

Insurance Who is responsible for obtaining and paying for the following insurance? 1. Tenant Pays 2. Landlord pays Will the tenant be required to provide proof of insurance? I always suggest clients to say yes, if not any PI will go to you! But however gets this page or part of the assignment can decide, in my sample I stated that tenant needs to proof insurance (upon request) Landlord Improvements Will the landlord be required to make any improvements to...

On April 1st. (X) Co. the trial balance shows the following: Prepaid Insurance 4,000 Equipment 20,000 Notes payable 10,000 Unearned Revenue 5,000 Services Revenue 2,200 Additional information: Prepaid insurance for 3-years, effective April 1st. Depreciation for equipment 1,000 per month. Notes payable were signed at the beginning of April. It is 3-Month, 12% -yearly - note. Five customers paid for the company’s 10-month X services package of $1,000 beginning in April. These customers were serviced in April. X services provided...

The Aaron Corp purchased a new computer system on June 11, 2017, for $680,000. What is the maximum deduction Aaron can take this year on this computer system? Show your computations and discuss/explain the alternatives in how you arrive at your answer.

Prepaid insuance expired = 3600/36*7 = $700

Prepaid insurance listed under current assets = 3600-700 = $2900

Option 2 is correct