A firm purchased a three-year insurance policy for $13,500 on July 1, 2019. The $13,500 was...

A firm purchased a three-year insurance policy for $13,500 on July 1, 2019. The $13,500 was debited to the Prepaid Insurance account. On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a two-year period. The firm paid $36,000 in advance and debited the amount to Prepaid Advertising. Prepare end-of-month adjusting entries for each of the above situations.

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ekkarill92 answered 2 years ago

A firm purchased a three-year insurance policy for $11,520 on July 1, 2019. The $11,520 was...

A firm purchased a three-year insurance policy for $11,520 on July 1, 2019. The $11,520 was debited to the Prepaid Insurance account. On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a two-year period. The firm paid $31,680 in advance and debited the amount to Prepaid Advertising. Prepare end-of-month adjusting entries for each of the above situations.

1. A firm purchased a four-year insurance policy for $8,640 on July 1, 2019. The $8,640...

1. A firm purchased a four-year insurance policy for $8,640 on July 1, 2019. The $8,640 was debited to the Prepaid Insuranceaccount. 2. On December 1, 2019, a firm signed a contract with a local radio station for advertising that will extend over a three-year period. The firm paid $42,480 in advance and debited the amount to Prepaid Advertising. Prepare end-of-month adjusting entries for each of the above situations.

On July 1, East Lake, Inc. purchased a 2-year insurance policy for $12,600. Prepaid Insurance was...

On July 1, East Lake, Inc. purchased a 2-year insurance policy for $12,600. Prepaid Insurance was debited for the entire amount. On December 31, when the annual financial statements are prepared, the appropriate adjusting journal entry to be made would be to a) debit Prepaid Insurance $2,100; credit Insurance Expense $2,100. b) debit Insurance Expense $9,450; Credit Prepaid Insurance $9,450. c) debit Prepaid Insurance $12,600; credit Insurance Expense $12,600. d) debit Insurance Expense $3,150; credit Prepaid Insurance $3,150.

On August 1, 2019, a firm purchased a 1-year insurance policyfor $4,500 and paid the...

On August 1, 2019, a firm purchased a 1-year insurance policy for $4,500 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 2019, isMultiple Choice $4,500. $1,875. $1,500. $2,625.

Oakland Farms purchased a one-year insurance policy for $36,000 on October 1, 2019. At the beginning...

Oakland Farms purchased a one-year insurance policy for $36,000 on October 1, 2019. At the beginning of the year (1/1/2019), they had $18,000 in prepaid expenses for insurnace. What is the necessary adjustment, journal entry, income statement adjustment, and balance sheet entry?

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

Two insurance policies provide the insurance coverage for the law firm. Policy one was purchased on July 1, last year for $2,064 and provides 24 months of liability coverage.

How do I record this adjusted entry.Two insurance policies provide the insurance coverage for the law firm. Policy one was purchased on July 1, last year for $2,064 and provides 24 months of liability coverage. Policy two was purchased on January 2, this year for $1,260 and is also a 24 month policy covering the business equipment.

On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $420. The correct...

On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $420. The correct adjusting entry on December 31, 2019, is: Multiple Choice debit Insurance Expense $140; credit Prepaid Insurance $140 debit Insurance Expense $315; credit Prepaid Insurance $315 debit Prepaid Insurance $35; credit Insurance Expense $35 debit Prepaid Insurance $420; credit Insurance Expense $420

On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $480. The correct...

On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $480. The correct adjusting entry on December 31, 2019, is:

On July 31, 2018, a company purchased a two-year insurance policy for $27,000, paying cash and...

On July 31, 2018, a company purchased a two-year insurance policy for $27,000, paying cash and debiting Prepaid Insurance for the entire two-year premium amount. The adjusting entry on December 31, 2018 includes a: credit to Prepaid Insurance $5,625. credit to Insurance Expense $5,625. debit to Prepaid Insurance $6,750. debit to Insurance expense $6,750.

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