Diane’s designs purchased a one year liability insurance policy on March 1 of a year for...

Diane’s designs purchased a one year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid expense

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ekkarill92 answered 2 years ago

Complete adjusting journal entries 1 On March 1, ABC purchased a one-year liability insurance policy for...

Complete adjusting journal entries 1 On March 1, ABC purchased a one-year liability insurance policy for $98,400. Upon purchase, the following journal entry was made: Dr Prepaid insurance 98,400 Cr Cash 98,400 The expired portion of insurance must be recorded as of 12/31/14. Notice that the expired portion from March through November has been recorded already. Make sure that the Prepaid Insurance balance after the adjusting entry is correct. 2 Depreciation expense must be recorded for the month of December....

High Class Painting purchased a 1-year insurance policy on 1 March 2020. The entire premium of...

High Class Painting purchased a 1-year insurance policy on 1 March 2020. The entire premium of $9000 was recorded by debiting Prepaid Insurance. Ignore GST. Required (a) Give the adjusting entry at 30 June for the financial year ending 30 June 2020. (b) What amount should be reported in the 30 June 2020 Statement of Financial Position for Prepaid Insurance? What type of account should this be? Show calculations. (c) If no adjusting entry was made on 30 June, by...

Adjusting journal entries from the following? 1 On March 1, 2016, ABC purchased a one-year liability...

Adjusting journal entries from the following? 1 On March 1, 2016, ABC purchased a one-year liability insurance policy for $27,000. Upon purchase, the following journal entry was made: Dr Prepaid insurance 27,000 Cr Cash 27,000 The expired portion of insurance must be recorded as of 12/31/16. Notice that the expired portion from March through November has been recorded already. Make sure that the Prepaid Insurance balance after the adjusting entry is correct. 2 Depreciation expense must be recorded for the...

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.

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 April 1, 2014, the premium on a one-year insurance policy was purchased for $3,900 cash...

On April 1, 2014, the premium on a one-year insurance policy was purchased for $3,900 cash with the insurance coverage beginning on that date. The books are adjusted only at year-end. Which of the following correctly describes the effect on the financial statements of the December 31, 2014 adjusting entry? (a) Insurance expense will increase $975. (b) Insurance expense will increase $2,925. (c) Prepaid insurance will decrease $975. (d) Prepaid insurance will increase $2,925.

1. purchased on sept 1 a one year insurance policy for 1,200 2. provided services to...

1. purchased on sept 1 a one year insurance policy for 1,200 2. provided services to customers during sept and recieved $30,000 cash Using the equation, write what category (ie cash, A/R, etc) is increased, decreased or no effect for these sections: Assets=Liabilities+Stockholder's Equity 2nd part////// using the same formula, assets=liabilities+stockholder's equity, the company needs to record the following ADJUSTING transactions to update their records AT THE END OF THE MONTH 1. the company did a pysical count of suplies...

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

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?

On january 1, DogMart company purchased a two years liability insurance policy for $47900 Cash. the Purchase...

On january 1, DogMart company purchased a two years liability insurance policy for $47900 Cash. the Purchase was recorded to prepaid insurance. How much would be the january 31 amount recorded to expense (use two decimals)

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