ON APRIL 1, THERE WAS $5,000 OF PREPAID INSURANCE

DURING THE YEAR, A TOTAL OF $12,000 WAS PAID OUT IN INSURANCE PREMIUMS.

ON MAY 31, THE PREPAID INSURANCE WAS $6,000

• CALCULATE THE INSURANCE EXPENSE FOR THE YEAR
• IF YOU ARE TOLD THAT THE CORPORATION HAS RECEIVED $5,000 FOR AN INSURANCE CLAIM DURING THE YEAR, WHAT WOULD BE THE CHANGE IN THE INSURANCE EXPENSE?

This year Zach was injured in an auto accident. As a result, he received the following payments.

Zach received $18,000 of disability pay. Zach has disability insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $4,300 in disability premiums for Zach this year.

Zach's hospital bills totaled $4,500 and were paid by his health insurance. Zach has health insurance provided by his employer as a nontaxable fringe benefit. Zach's employer paid $6,250 in health insurance premiums for Zach this year.

What amount must Zach include in his gross income?

An individual's demand for physician office visits in a given year is given by, Q = 10 - 0.04P, where Q is the number of office visits and P is the out-of-pocket price paid by the individual for each visit. Assume the market price of an office visit is $180.

a) Suppose the individual has insurance and pays only $40 a copayment for each visit. How many office visits will the individual make in one year?

b) What is the moral hazard and deadweight loss associated with having insurance?

1. You will make deposits of $1,000 at the end of each year for 40 years in your investment account. After the 40th deposit, you will immediately withdraw all money from the account to buy a retirement annuity for 35 years with equal annual payments (paid at year-end) from a life insurance company. If the annual rate of return over the entire period (75 years) is 5%, how much is the annual payment from the insurance company?
2. The amount of your 25-year mortgage loan is $500,000, and the interest rate is 6% p.a. How much is your monthly loan payment? How much interest will you pay for the 3rd year?

On August 1, 2012, Lincoln Services was started and at the end of the year December 31, 2012, had the following unadjusted trial balance. please prepare the year-end adjusting and closing entries. please record the transactions in the General Journal provided.

Data for ajusting and closing Entries

1. Supplies available at year-end amount $3200

2. Expired prepaid insurance at year end amounted $3900

3.Depriciation on the equiment $ 8500

4. The december utility expense of $550 has not yet been recorded.

5. At year end employees had accrued wages owed of $1600

6. The accrued rent expense for december is $200

7. Property taxes assessed not yet paid amount to $900

8. Interest on the Note Payable for December amouts to $240

Unified Airlines is being sued by Northeast Airlines for $5,000,000. At the end of the year, Unified feels it is probable that it will pay $5,000,000 at some point in the following year. What should Unified and Northeast record at the end of the year concerning the lawsuit? Unified does not record any contingent loss; Northeast records $5,000,000 contingent gain. Unified records $5,000,000 contingent loss; Northeast does not record any contingent gain. Unified records $5,000,000 contingent loss; Northeast records $5,000,000 contingent gain. Neither company records a contingent loss or gain.

Enterprise Risk Management is the title of this chapter. In words that a five year old could understand, tell the class what this means to financial managers working for a public corporation?