Insurance expense for the year = Total amount*Number of months in current year/Total months
= 3700*5/48
= $385.42
Hence, the correct entry would be
D.Insurance expense debited by $385 and Credit prepaid insurance $385
(To recognize expense during the year)
Tumbler, Inc. bought a 4-year insurance policy on August 1 for $3,700. Assume no other adjusting...
this Question: 3 pts 13 of 22 19 complete) Tumbler, Inc. bought a 3-year insurance policy on August 1 for $3,900. Assume no other adjusting entries have been done this fiscal year. The adjusting entry on December 31 would be: O A debit Prepaid Insurance, 5108 credit Insurance Expense, $108. OB. debit Insurance Expense, S542; credit Prepaid Insurance $542 O C. debit Prepaid Insurance, 5542 credit Insurance Expense,5542 OD. debit Insurance Expense, $108; credit Prepaid Insurance, $108.
Smokey Company purchases a one-year insurance policy on July 1 for $13,176. The adjusting entry on December 31 is Oa. debit Insurance Expense, $6,588 and credit Prepaid Insurance, $6,588 Ob. debit Insurance Expense, $13,176 and credit Prepaid Insurance, $13,176 Oc. debit Insurance Expense, $1,098 and credit Prepaid Insurance, $13,176 Od. debit Prepaid Insurance, $12,078 and credit Cash, $12,078
VULELE Tate Company paid $12,000 for a one-year insurance policy on February 1, 2019 and the insurance coverage began on February 1. Assuming the company made the most appropriate journal entry to record the insurance on February 1 and that no other adjusting entries have been made, the December 31, 2020 adjusting entry is debit Insurance Expense and credit Prepaid Insurance Expense for $11,000. debit Prepaid Insurance Expense and credit Insurance Expense for $11,000. debit Prepaid Insurance Expense and credit...
On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $1,440. The correct adjusting entry on December 31, 2019, is: Multiple Choice debit Insurance Expense $480; credit Prepaid Insurance $480 debit Insurance Expense $1,080; credit Prepaid Insurance $1,080 debit Prepaid Insurance $120; credit Insurance Expense $120 debit Prepaid Insurance $1,440; credit Insurance Expense $1,440
On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $720. The correct adjusting entry on December 31, 2019, is: Multiple Choice debit Insurance Expense $240; credit Prepaid Insurance $240 debit Insurance Expense $540; credit Prepaid Insurance $540 debit Prepaid Insurance $60; credit Insurance Expense $60 debit Prepaid Insurance $720; credit Insurance Expense $720
On September 1, 2019, Jay Walker Company purchased a one-year insurance policy for $1,320. The correct adjusting entry on December 31, 2019, is: Multiple Choice debit Insurance Expense $440; credit Prepaid Insurance $440 debit Insurance Expense $990; credit Prepaid Insurance $990 debit Prepaid Insurance $110; credit Insurance Expense $110 debit Prepaid Insurance $1,320; credit Insurance Expense $1,320
Adjusting Journal Entries: [201280Q4020620] On Jan. 1, Year 4, Merle Company had a proper balance in Prepaid Insurance account of $15,960. The firm had paid $30,240 on August 1, Year 2 for a three-year insurance policy that became effective on that date. That was the only insurance policy for the firm in Years 2 and 3, [Hint: this policy expires on August 1, Year 5.] On May 1, Year 4, the firm purchased a second insurance policy to cover other...
On August 1, 2021, ABC purchased a 2 year fire insurance policy from DEF Company for $24,000. 1) Prepare the adjusting entry for DEF on 12/31/21 if the original entry was recorded to a temporary account and no additional entries have been made for the year associated with this transaction. 2) Prepare the adjusting entry for DEF on 12/31/21 if the original entry was recorded to a permanent account and no additional entries have been made for the year associated...
. Bland Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2003, and charged the $4,200 premium to Insurance expense. At its December 31, 2003, year-end, Bland Foods would record which of the following adjusting entries? A)Insurance expense 875 Prepaid insurance 875 B) Prepaid insurance 875 Insurance expense 875 C) Insurance expense 875 Prepaid insurance 3,325 Insurance payable 4,200 D)Prepaid insurance 3,325 Insurance expense 3,325
Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2021, and charged the $3,000 premium to Insurance expense. At its December 31, 2021, year-end, Yummy Foods Multiple Choice Prepaid insurance 2,375 Insurance expense 2,375 Prepaid insurance 625 Insurance expense 625 Insurance expense 625 Prepaid insurance 625 Insurance expense 625 Prepaid insurance 2,375 Insurance payable 3,000 would record which of the following adjusting entries?