Question
In: Accounting
Adjusting entry the prepaid insurance account is reported at $800 on the December 31, 2019, unadjusted...
Adjusting entry
the prepaid insurance account is reported at $800 on the December 31, 2019, unadjusted trial balance. Analysis of the insurance coverage reveals that the company has two policies that were acquired at the same premium :
A- policy A for 3 years was acquired on January 1, 2017.
b- policy B for 2 years was acquired on January 1, 2019.
Solutions
Expert Solution
A. Since policy was purchased on Jan 1, 2017 i.e. 2017, 2018 and 2019, therefore balance for that is balance only for 2019 is left which is 1/3rd of original value. Policy B is for 2 years out of which 2 years are remaining.
So -1/3x + x = $800, x = 600
Policy one expired = 600/3 = 200
Policy b expired = 600/2 = 300
| Account Titles | Debit | Credit |
| Insurance Expense | $500 | |
| Prepaid Insurance | $500 | |
| (Insurance expired during the period) |
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 ...
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
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 $12,834 and
unexpired insurance of $4,288 for the fiscal year ending on April
30?
A company must make adjusting entry on December 31, 2019 Expired insurance, $7,000; on December 1,...
A company must make adjusting entry on December 31, 2019
Expired insurance, $7,000; on December
1, 2019, the firm paid $42,000 for six months’ insurance coverage
in advance and debited Prepaid Insurance
for this amount.
How do you post it in the General Journal and the Ledger.
Journalize the adjusting entry for bad debts at December 31, 2017, assuming that the unadjusted balance...
Journalize the adjusting entry for bad debts at December 31,
2017, assuming that the unadjusted balance in Allowance for
Doubtful Accounts is a debit of $ 1,300 and the aging schedule
indicates that total estimated bad debts will be $ 38,000. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually.)
Unadjusted account balances at December 31, 2019, for Rapisarda Company are as follows:
Preparation of a Worksheet (Appendix 3A)
Unadjusted account balances at December 31, 2019, for Rapisarda Company are as follows:
The following data are not yet recorded:
a. Depreciation on the equipment is $18,350.
b. Unrecorded wages owed at December 31, 2019: $4,680.
c. Prepaid rent at December 31, 2019: $9,240.
d. Income taxes expense: $5,463.
Required:
Prepare a completed worksheet for Rapisarda Company.
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...
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.
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