Use the following information to calculate and prepare the adjusting entry needed to record the amount...

Use the following information to calculate and prepare the adjusting entry needed to record the amount of expired insurance.

A 48 month insurance policy was purchased on March 1 2017 for $5,000.

Solutions

Expert Solution

Accounts	Debit	Credit
Insurance expense (5,000 * 10/48)	1041.67
Prepaid Insurance		1041.67
(to record insurance expense)

Or try entering round figure 1042

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Use the adjusting journal entry information to prepare the formal adjusting journal entries as of December...

Use the adjusting journal entry information to prepare the formal adjusting journal entries as of December 31, 2020. Remember to skip a line between each adjusting journal entry and use AJ1, AJ2, AJ3, etc, instead of the actual date. Information for Year End Adjusting Journal Entries December 31, 2020 1) The building(cost of $180,000)was purchased on January 1, 2019 and it is expected to have a useful life of 30 years with no salvage value. Depreciation expense has been recorded...

Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance...

Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating whether it is an addition (+) or subtraction (–). Column headings reflect the expanded balance sheet equation; items that affect net income should not be shown as affecting stockholders' equity. The first transaction is provided as an illustration. During the month, the Supplies (asset) account was debited $1,750...

Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...

Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All information was provided to you as of 12/31/2018. (Round all numbers to the nearest dollar). (a) Based on your review of the cash balances, you note that there was an overdraft of $9,600 in one of your bank accounts. However, there are many bank accounts at the specific bank where the account with the overdraft is deposited. The total cash at this bank equaled a debit balance...

Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...

Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All information was provided to you as of 12/31/2018. (Round all numbers to the nearest dollar). (i) Czar has two loans outstanding as of 12/31/2018. Interest is paid annually on January 1st. The facts on each loan are as follows: First Trust Bank Loan – outstanding since January 1, 2018 with a 6% interest rate. This loan was taken out to finance the construction of the...

Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All...

Prepare in journal entry form all adjusting and correcting journal entries based on the following information. All information was provided to you as of 12/31/2018. (Round all numbers to the nearest dollar). (e) Per a physical count of office supplies, $4,430 of supplies remained at the end of 2018. The balance $4,800 in the office supplies account represents last years ending balance. During the year, $28,000 of office supplies were purchased and immediately expensed. (f) On November 1, 2018 Czar paid Ewald Advertising...

1. Which of the following are examples of adjusting entries? i) An entry to record interest...

1. Which of the following are examples of adjusting entries? i) An entry to record interest owing on a bank loan at the end of the period. The interest is not yet paid, and is previously unrecorded. ii) A depreciation entry to reflect the use of long-lived equipment during the period. iii) An entry to correct an error that was discovered in the trial balance, when a $100 debit was incorrectly posted to inventory rather than accounts receivable. a. i...

Prepare the fiscal 2011 adjusting journal entry for each of the items of additional information listed...

Prepare the fiscal 2011 adjusting journal entry for each of the items of additional information listed below the trial balance; indicate “NONE” if no adjustment is needed. Cash 39,000 Accounts Receivable 40,000 Allowance for Doubtful Accounts 2,000 Note Receivable 10,000 Inventory 33,000 Office Supplies 4,000 Prepaid Advertising 11,000 Prepaid Insurance 5,000 Machinery 120,000 Accumulated Depreciation 14,000 Accounts Payable 24,000 Unearned Service Revenues 13,000 Unearned Consulting Revenues 14,000 Common Stock 50,000 Retained Earnings 138,000 Sales Revenue 245,000 Cost of Goods Sold...

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries:

Errors and Adjusting Entries Use the following information to record necessary end of period journal entries: A man came into Cutting Edge on 31 March 2020 to pay for repairs to his mower which he will bring in later. He paid $2,500 cash. The mower was arranged to be delivered to Cutting Edge on 10 April, 2020.  Repair services of $6,250 were provided on 31 March 2020 but have not yet been recorded in the transactions. Payment has...

Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $148,000, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $2,516 credit balance before the adjustment. (b) a $740 debit balance before the adjustment.

prepare the journal entry to record payment of the note at maturity

Question: On November 7, 2017, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000. (1) Compute the accrued interest payable on December 31, 2017, (2) prepare the journal entry to record the accrued interest expense at December 31, 2017, and (3) prepare the journal entry to record payment of the note at maturity

Subjects