Question

In: Accounting

What is journal entry for a Purchase a one-year insurance policy for $5,880 ?

What is journal entry for a Purchase a one-year insurance policy for $5,880 ?

Solutions

Expert Solution

Solution:

Dr. Insurance Expense $5880
Cr. Bank/ Cash $5880

Insurance expense will be debited while bank will be credited on purchase

Adjusting entry:
Dr. Insurance Expense $490
Cr. Prepaid Insurance $490


Related Solutions

Adjusting Entry for Prepaid Insurance Cooper Inc. recorded the purchase of a three-year insurance policy on...
Adjusting Entry for Prepaid Insurance Cooper Inc. recorded the purchase of a three-year insurance policy on July 1 in the amount of $8,400 by debiting Prepaid Insurance and crediting Cash. Prepare the necessary December 31 year-end adjusting entry.
Prepare the following journal entries in proper journal entry form. 1. Purchased a 1-year insurance policy,...
Prepare the following journal entries in proper journal entry form. 1. Purchased a 1-year insurance policy, paid $2,640. 2. Billed a customer for a $2,100 job. 3. Received $4,800 to start an eight-month job, beginning next month. 4. Bought a computer on credit for $3,600. 5. Contributed cash of $3,400 to a business checking account.         6. Received a gas bill, $300. 7. Paid $400 for van repairs. 8. Purchased supplies for $400 in cash. 9. Transferred $3,600 to his...
Smokey Company purchases a one-year insurance policy on July 1 for $4,380. The adjusting entry on...
Smokey Company purchases a one-year insurance policy on July 1 for $4,380. The adjusting entry on December 31 is a.debit Insurance Expense, $2,190; credit Prepaid Insurance, $2,190 b.debit Insurance Expense, $1,825; credit Prepaid Insurance, $1,825 c.debit Insurance Expense, $2,555; credit Prepaid Insurance, $2,555 d.debit Prepaid Insurance, $2,190; credit Cash, $2,190
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                                
Smokey Company purchases a one-year insurance policy on July 1 for $3,792. The adjusting entry on...
Smokey Company purchases a one-year insurance policy on July 1 for $3,792. The adjusting entry on December 31 is a.debit Insurance Expense, $2,212; credit Prepaid Insurance, $2,212 b.debit Insurance Expense, $1,580; credit Prepaid Insurance, $1,580 c.debit Insurance Expense, $1,896; credit Prepaid Insurance, $1,896 d.debit Prepaid Insurance, $1,896; credit Cash, $1,896
For this Journal entry, recommend a health care reform policy alternative to positively impact insurance coverage...
For this Journal entry, recommend a health care reform policy alternative to positively impact insurance coverage and financing the delivery of healthcare in this country. Your Journal entry should be at least 400 words, and cite appropriate references.
What would the journal entry be for this? Trapp Inc. sells 1,000 one-year subscriptions to be...
What would the journal entry be for this? Trapp Inc. sells 1,000 one-year subscriptions to be earned over the next 12 months.                             Customers paid $6,000 cash and were billed $6,000.
You are looking to purchase a 25 year life insurance policy for $150,000. The policy will...
You are looking to purchase a 25 year life insurance policy for $150,000. The policy will pay annually at the end of the year. The current market interest rate is 2.5%. What should the annual payment per year be? show all your works
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....
Provide the journal entry for the following: 1) Two insurance policies provide the insurance coverage for...
Provide the journal entry for the following: 1) 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. 2) Accrued interest on all short-term and long-term notes payable totals $425 for the quarter. 3) The automobile used by the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT