On September 1, 2009, Olpe Corporation paid $2,400 in advance for a one year insurance policy...

On September 1, 2009, Olpe Corporation paid $2,400 in advance for a one year insurance policy that covers the period September 1, 2009 through August 31, 2010. What amount of insurance expense should Olpe report for the year endedDecember 31, 2009?

A)$800

B)$1,200

C)$2,400

D)$0

Expert Solution

At the time of payment of insurance premium, it will record as prepaid expenses. at year end expense of $800 ($2,400/12*4 months)

Answer will be A $800

You can reach me over comment box if you have any doubts. Please rate this answer

ekkarill92 answered 2 years ago

On August 1, a company paid the $2,400 premium on a one-year insurance policy with benefits...

On August 1, a company paid the $2,400 premium on a one-year insurance policy with benefits beginning on that date. What will the balance be in the Prepaid Insurance account on the Balance Sheet for the current year ended December 31? Select one: A. $1,000. B. $2,400. C. $1,400. D. $400. E. $1,200.

A. Paid $6,400 cash in advance on October 1 for a one-year insurance policy. B. Received...

A. Paid $6,400 cash in advance on October 1 for a one-year insurance policy. B. Received an $5,200 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting April 1. C. Purchased $2,000 of supplies on account. At year’s end, $255 of supplies remained on hand. D. Paid $11,520 cash in advance on August 1 for a one-year lease on office space. The Accounting Equation Event/ Adjustment Total Assets = Liabilities +...

The company purchased a one-year insurance policy on November 1, 2010 at a cost of $2,400. No...

The company purchased a one-year insurance policy on November 1, 2010 at a cost of $2,400. No adjusting entries for the year had yet been made. Debit : insurance expense $400 credit : prepaid insurance $400 Why is it become $400?

On March 1, 2009, the premium on a two-year insurance policy on equipment was paid amounting...

On March 1, 2009, the premium on a two-year insurance policy on equipment was paid amounting to $1,800. How would the financial position as of December 31, 2009 (the end of the accounting period) be affected if the accountant did not record the adjusting entry? Select one: a. No accounts will be affected. b. Assets overstated by $750; Liabilities unaffected; Owners' equity overstated by $750. c. Assets understated by $750; Liabilities unaffected; Owners' equity understated by $750. d. Assets understated...

A one-year insurance policy was purchased on June 1 for$2,400. The adjusting entry on December 31...

A one-year insurance policy was purchased on June 1 for $2,400. The adjusting entry on December 31 would be (assume no adjustments have been made for insurance at all during the current year): Date Account Titles Debits Credits

Two Company purchased a one-year insurance policy on July 1, 2018 for $2,400. The company debited...

Two Company purchased a one-year insurance policy on July 1, 2018 for $2,400. The company debited the entire amount to insurance expense. The adjusting entry on December 31, 2018 would include A credit to prepaid insurance for $2,400 A debit to insurance expense for $1,200 No entry A credit to insurance expense for $1,200

On April 1, Year8, the premium on a one-year insurance policy on equipment was paid. The...

On April 1, Year8, the premium on a one-year insurance policy on equipment was paid. The premium was $3,000. The company does not have any other insurance policies. The financial statements as of 12/31/Year8 would report: a. Insurance expense $750; Prepaid insurance $2,250. b. Insurance expense $0; Prepaid insurance $3,000. c. Insurance expense $2,250; Prepaid insurance $750. d. Insurance expense $2,000; Prepaid insurance $1000. e. Insurance expense $3,000; Prepaid insurance $0.

On July 1, a company paid the $1,200 premium on a one-year insurance policy with benefits...

On July 1, a company paid the $1,200 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31? Multiple Choice $500. $600. $300. $1,200. $900.

The Fireworks Hut paid $18,200 for a one-year insurance policy on January 1 and recorded the...

The Fireworks Hut paid $18,200 for a one-year insurance policy on January 1 and recorded the entire amount as prepaid insurance. Before preparing its March 31 financial statements the company should make which of the following adjusting entries? Select one: a. debit Prepaid Insurance, $13,650; credit Insurance Expense, $13,650. b. debit Cash, $9,100; credit Prepaid Insurance, $9,100. c. debit Cash, $18,200; credit Insurance Expense, $18,200. d. debit Insurance Expense, $4,550 credit Prepaid Insurance $4,550.

On July 1 of the current year, Uber paid a premium in advance on a one-year...

On July 1 of the current year, Uber paid a premium in advance on a one-year insurance policy on equipment in the amount of $72,000. At the time, the full amount was recorded as prepaid insurance. On December 31, Uber would be required to record an adjusting entry that would include which of the following: A. $6,000 Increase to insurance expense B . $6,000 decrease to prepaid insurance C. $12,000 increase to insurance expense D. $12,000 decrease to prepaid insurance

Question