Question
In: Accounting
on the end-of-period spreadsheet, prepaid insurance has a balance of $2400 in the unadjusted trail balance...
on the end-of-period spreadsheet, prepaid insurance has a balance of $2400 in the unadjusted trail balance debit column and an adjustment of $200 in the adjustments credit column. what amount should appear for prepaid insurance in the adjusted trail balance column and ultimately the balance sheet?
Solutions
Expert Solution
The credit balance in adjusted trial balance reflects the journal entry which pertains to the debit of insurance expense related to the current period. Credit amount should be subtarcted from the prepaid balance of $2,400 and therefore, net debit amount of $2,200 will be shown in the adjusted trial balance and ultimately in the balance sheet.
ekkarill92 answered 2 years agoRelated Solutions
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 ...
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet. The unadjusted trial balance of...
Ledger Accounts, Adjusting Entries, Financial Statements, and
Closing Entries; End-of-Period Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January
31, 2018, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2018
Debit Balances
Credit Balances
11
Cash
13,100
13
Supplies
8,000
14
Prepaid Insurance
7,500
16
Equipment
113,000
17
Accumulated Depreciation—Equipment
12,000
18
Trucks
90,000
19
Accumulated Depreciation—Trucks
27,100
21
Accounts Payable
4,500
31
Common Stock
30,000
32
Retained Earnings
96,400
33
Dividends
3,000
41...
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet. The unadjusted trial balance of...
Ledger Accounts, Adjusting Entries, Financial Statements, and
Closing Entries; End-of-Period Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January
31, 2018, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2018
Debit Balances
Credit Balances
11
Cash
13,100
13
Supplies
8,000
14
Prepaid Insurance
7,500
16
Equipment
113,000
17
Accumulated Depreciation—Equipment
12,000
18
Trucks
90,000
19
Accumulated Depreciation—Trucks
27,100
21
Accounts Payable
4,500
31
Common Stock
30,000
32
Retained Earnings
96,400
33
Dividends
3,000
41...
Ledger Accounts, Adjusting Entries, Financial Statements, and Closing Entries; End-of-Period Spreadsheet. The unadjusted trial balance of...
Ledger Accounts, Adjusting Entries, Financial Statements, and
Closing Entries; End-of-Period Spreadsheet.
The unadjusted trial balance of Recessive Interiors at January
31, 2018, the end of the year, follows:
Recessive Interiors
Unadjusted Trial Balance
January 31, 2018
Debit Balances
Credit Balances
11
Cash
13,100
13
Supplies
8,000
14
Prepaid Insurance
7,500
16
Equipment
113,000
17
Accumulated Depreciation—Equipment
12,000
18
Trucks
90,000
19
Accumulated Depreciation—Trucks
27,100
21
Accounts Payable
4,500
31
Common Stock
30,000
32
Retained Earnings
96,400
33
Dividends
3,000
41...
The balance in the prepaid insurance account, before adjustment at the end of the year, is...
The balance in the
prepaid insurance account, before adjustment at the end of the
year, is $27,000. Journalize the adjusting entry required under
each of the following alternatives for determining the amount of
the adjustment:
a.
The amount of insurance expired during the year is $20,250.
* Insurance expense =
$20,250
* Prepaid Insurance =
?
b.
The amount of unexpired insurance applicable to future periods is
$6,750.
* Insurance expense =
?
* Prepaid Insurance =
$20,250
unadjusted trial balance pre- paid rent 3000 prepaid advertising 6000 prepaid insurance 3250 need to adjust...
unadjusted trial balance
pre- paid rent 3000
prepaid advertising 6000
prepaid insurance 3250
need to adjust trail balance using following entry
15 days of rent remained pre-paid at the start of June.
3 months of advertising remained pre-paid at the start of
June.
5 months of insurance remained pre-paid at the start of
June.
cal
At December 31, the unadjusted trial balance of H&R Tacks reports Prepaid Insurance of $6,960 and...
At December 31, the unadjusted trial balance of H&R Tacks
reports Prepaid Insurance of $6,960 and Insurance Expense of $0.
The insurance was purchased on July 1 and provides coverage for 24
months. Required: Prepare the adjusting journal entry on December
31. Prepare the T-accounts for each account, enter the unadjusted
balances, post the adjusting journal entry, and report the adjusted
balance.
At December 31, the unadjusted trial balance of H&R Tacks reports Prepaid Insurance of $9,120 and...
At December 31, the unadjusted trial balance of H&R Tacks
reports Prepaid Insurance of $9,120 and Insurance Expense of $0.
The insurance was purchased on July 1 and provides coverage for 24
months.
1.
Prepare the adjusting journal entry on December 31.
2.
Prepare the T-accounts for each account, enter the unadjusted
balances, post the adjusting journal entry, and report the adjusted
balance.
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