How would you debit and credit this (journalize this)? 31/03/16 The insurance payment on 10/03/16 (cost...

How would you debit and credit this (journalize this)?

31/03/16 The insurance payment on 10/03/16 (cost $690) was for 3 months (March, April and May)

31/03/16 Wages for 3 weeks are owing to staff $650

Solutions

Expert Solution

In general, December is Financial year ending.

Here specially asked for the date 31/3/16.

So, I assued it is as Financial year ending.

For insurance purpose insurance payment on 10/3/16 but specially said that insurance for march, april and May only.

1/3 of amount paid is pertaining to current month and current financial year. and balance 2/3 is pertaining to next financial year. so 2/3 of amount paid is to be recorded as prepaid insurance and 1/3 is recorded as expense.

on 10/3/16, payment passed as below.

Insurance expenses a/c $ 690

Cash a/c $ 690

( Being insurance premium paid for the month Mar, Apr & May 2016 )

So, Journal entry for the Insurance premium is recorded as below on 31/3/2016

prepaid insurance a/c $ 460

Insurance expenses a/c $ 460

( Being insurance premium paid in advance )

As staff wages for 3 weeks are owing. so, for the owing amount journal entry to be recorded on 31/3/16 as below.

Staff wages a/c $ 650

Outstanding staff wages a/c $ 650

( Being Staff wages for 3 weeks are not yet paid )

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Journalize the first payment on December 31, 2018.

Question: On January 1, 2018, Fox Corporation signed an $80,000, four-year, 4% note. The loan required Fox to make payments annually on December 31 of $20,000 principal plus interest. 1. Journalize the issuance of the note on January 1, 2018. 2. Journalize the first payment on December 31, 2018.

Journalize the first note payment on December 31, 2018.

Question: Accounting for a long-term note payable On January 1, 2018, Lakeman-Fay signed a $1,500,000, 15-year, 7% note. The loan required Lakeman-Fay to make annual payments on December 31 of $100,000 principal plus interest. Requirements 1. Journalize the issuance of the note on January 1, 2018. 2. Journalize the first note payment on December 31, 2018.

Journalize the following accounting transactions with the correct Debit and Correct Credit entry. - borrowed money...

Journalize the following accounting transactions with the correct Debit and Correct Credit entry. - borrowed money from the bank - paid off the loan from the bank - bought equipment on account -paid off the equipment bought on account - Mr. Tucker invested money in his sole - proprietorship - paid the insurance bill - bought supplies for cash -made cash sales for the day - made sales on account - collected money from sales on account

Insurance of $23,800 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance

Entries to Correct ErrorsThe following errors took place in journalizing and posting transactions:Insurance of $23,800 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. Dividends of $23,000 were recorded as a debit to Wages Expense and a credit to Cash.Journalize the entries to correct the errors. If an amount box does not require an entry, leave it blank.

LO3 Adjustment for supplies used: debit Supplies Expense and credit Supplies. Adjustment for expired insurance: debit...

LO3 Adjustment for supplies used: debit Supplies Expense and credit Supplies. Adjustment for expired insurance: debit Insurance Expense and credit Prepaid Insurance. Adjustment for depreciation: debit Depreciation Expense and credit Accumulated Depreciation. Adjustment for accrued wages: debit Wages Expense and credit Wages Payable. Complete the work sheet for Sheila's Salon for the month of November. Adjustment information: (a) Depreciation of equipment for the month of November, $750. (b) Accrued wages owed at the end of November, $325. (c) Supplies used...

Phoenix Restaurants accepts credit and debit cards as forms of payment. Assume Phoenix had $12,000 of credit and debit card sales on June 30, 2017.

Question Phoenix Restaurants accepts credit and debit cards as forms of payment. Assume Phoenix had $12,000 of credit and debit card sales on June 30, 2017.9. Suppose Phoenix’s processor charges a 2% fee and deposits sales net of the fee. Journalize the sale transaction for the restaurant.10. Suppose Phoenix’s processor charges a 2% fee and deposits sales using the gross method. Journalize the sale transaction for the restaurant.

Trial balance March 31, 2019 Information Debit Credit Cash 10,800,000 Prepaid insurance 4,800,000 Equipment 120,000,000 Office...

Trial balance March 31, 2019 Information Debit Credit Cash 10,800,000 Prepaid insurance 4,800,000 Equipment 120,000,000 Office supplies 2,600,000 Accounts payable 79,200,000 Capital 58,000,000 Income 9,000,000 Salary expense 6,400,000 Electrical Load 1,600,000 AMOUNT 146,200,000 146,200,000 Additional customization information: The insurance premium rate is IDR 400,000 per month. The remaining equipment in the warehouse until March 31, 2019 is IDR 2,000,000. Equipment depreciation per month of IDR 1,800,000. The interest accrued by the company on trade payables on March 31, 2019 is...

Ryan Company Trial Balance December 31, 2017 Debit Credit Cash 21,800 Accounts Receivable 18,800 Prepaid Insurance...

Ryan Company Trial Balance December 31, 2017 Debit Credit Cash 21,800 Accounts Receivable 18,800 Prepaid Insurance 1,000 Equipment 5,000 Accumulated Depreciation-Equipment 9,600 Accounts Payable 11,600 Salaries and Wages Payable 2,200 Unearned Rent Revenue 1,600 Common Stock 20,000 Retained Earnings 11,000 Dividends 5,600 Service Revenue 69,200 Rent Revenue 26,200 Salaries and Wages Expense 36,200 Supplies Expense 4,000 Rent Expense 21,600 Insurance Expense 3,000 Depreciation Expense 2,400 151,400 151,400 Prepare the income and statement of changes in stockholders' equity statements for the...

A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.

PG. 34A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.

As of 12/31/03, an insurance company has a known obligation to pay $1,000,000 on 12/31/2007. To...

As of 12/31/03, an insurance company has a known obligation to pay $1,000,000 on 12/31/2007. To fund this liability, the company immediately purchases 4-year 5% annual coupon bonds totaling $822,703 of par value. The company anticipates reinvestment interest rates to remain constant at 5% through 12/31/07. The maturity value of the bond equals the par value. Under the following reinvestment interest rate movement scenarios effective 1/1/2004, what best describes the insurance companys profit or (loss) as of 12/31/2007 after the...

Subjects