Question
In: Accounting
prepaid insurance account has a balance of 9350 remaining in October 31 2011 of two year...
prepaid insurance account has a balance of 9350
remaining in October 31 2011 of two year policy purchased in April
2010
the calculation was like that
9350 /17 550
prepaid insurance for year
550 *12 = 6600 and was the right amount but why they made it that
way
Solutions
Expert Solution
| Start date of Policy | 1-Apr-10 |
| Duration | 24 Months |
| End date of Policy | 31-Mar-12 |
| Expired months till Oct 2011 | 17 months |
| Remaining months to expiry | 5 months |
| Prepaid Insurance Balance | 9350 |
| Total Insurance Premium | 44880 |
| (9350/5X24) | |
| Insurance expenses for year | 22440 |
| (44880/24 X12) |
ekkarill92 answered 3 years agoRelated Solutions
the prepaid balance in the prepaid insurance account represent the remaining balance of two year policy...
the prepaid balance in the prepaid insurance account
represent the remaining balance of two year policy purchased in
April 2010
trial balance unjusted 31 October 2011
prepaid insurance 9350
the office furniture was purchased in March 1 2010 and has
estimated useful life of two years of use it is expected that the
furniture will be worthless
office furniture October 31 2011 unjusted trial balance
61440
what are the adjustments t for this two
transactions
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 ...
The prepaid insurance account had a balance of $7,000 at the beginning of the year
Adjusting Entries for Prepaid InsuranceThe prepaid insurance account had a balance of $7,000 at the
beginning of the year. The account was debited for $24,000 for
premiums on policies purchased during the year. Journalize the
adjusting entry required under each of the following alternatives
for determining the amount of the adjustment:a. The amount of unexpired insurance applicable
to future periods is $8,500.Insurance ExpensePrepaid Insuranceb. The amount of insurance expired during the
year is $22,500.Insurance ExpensePrepaid Insurance
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
The 12/31/17 balance in the prepaid insurance account is composed of the following policies:
The 12/31/17 balance in
the prepaid insurance account is composed of the following
policies: Coverage
Period
Amount
1/1/17-12/31/18
$8,368
6/1/17-11/30/18
4,800
12/1/17-5/31/18
2,000Prepare the adjusting journal entry
for 12/31/17
The Prepaid Insurance account has a normal balance of $5,625 at the beginning of the month....
The Prepaid Insurance account has a normal balance of $5,625 at
the beginning of the month. The company used $1,470 of insurance
coverage during the month. Which of the following statements is
correct?
The company should credit Insurance Expense for $1,470 and debit
Prepaid Insurance for $1,470.
Retained earnings will decrease and stockholders' equity will
increase.
The company should debit Insurance Expense for $1,470 and credit
Prepaid Insurance for $1,470.
Retained earnings and stockholders' equity will both
increase.
Directions: Journalize the adjusting entries. Adjustment for Prepaid Insurance The Prepaid Insurance account began the year...
Directions: Journalize the adjusting entries.
Adjustment for Prepaid Insurance
The Prepaid Insurance account began the year with a balance of
$460. During the year, insurance in the amount of $1,040 was
purchased. At the end of the year (December 31), the amount of
insurance still unexpired was $700. Prepare the year-end entry in
journal form to record the adjustment for insurance expense for the
year.
Adjustment for Supplies
The Supplies account began the year with a balance of $380. During...
Which of the following is the proper adjusting entry, based on a prepaid insurance account balance...
Which of the following is the proper adjusting entry, based on a
prepaid insurance account balance before adjustment of $17,192 and
unexpired insurance of $2,150, for the fiscal year ending on April
30?
a.debit Insurance Expense, $17,192; credit Prepaid Insurance,
$17,192
b.debit Insurance Expense, $15,042; credit Prepaid Insurance,
$15,042
c.debit Insurance Expense, $2,150; credit Prepaid Insurance,
$2,150
d.debit Prepaid Insurance, $15,042; credit Insurance Expense,
$15,042
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