Homework Answers
ANSWER:
(a)March'15 recording on Balance Sheet for Prepaid Insurance Policy:
Assets
Prepaid Insurance - 1,200
(b)April'30 recording on Balance Sheet for Prepaid Insurance Policy:
As the Prepaid for a month have been realised, an amount of INR 1,200/12 = 100 would be recorded on the expense side i.e. Liability side of the balance sheet
Liabilities
Insurance Expense 100
Comment below in case of any doubts
Add Answer to:
6. On March 15, Smart Inc. paid $1,200 for a one-year insurance policy that starts on...
On March 15, Smart Inc. paid $1,200 for a one-year insurance policy that starts on April...
On March 15, Smart Inc. paid $1,200 for a one-year insurance policy that starts on April 1. a) What should be recorded to the accounting equation on March 15? Assets Liabilities Equity b) What adjustment should be recorded to the accounting equation to properly state the accounts at April 30? Assets Liabilities Equity
5. At the end of the October, XYZ Corp. owes employee wages of $750, but hasn't...
5. At the end of the October, XYZ Corp. owes employee wages of $750, but hasn't paid them (they will be paid in Nov.) a. What should be recorded to the accounting equation to account for the wages that are owed? Assets Liabilities Equity b. If the above transaction is not recorded at the end of the month, October expenses will be liabilities will be and net income will be (indicate understated or overstated for all three) 6. On March...
New Waves Company paid $3,600 on April 1, 2009, for a three-year insurance policy. It was...
New Waves Company paid $3,600 on April 1, 2009, for a three-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment New Waves will make to properly report expenses when preparing the December 31, 2009, financial statements. (Assume no previous adjustments to prepaid insurance have been made.) (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.) Assets Liabilities + Shareholders' Equity Contributed Capital + Retained Earnings...
a. Paid $6,400 cash in advance on April 1 for a one-year insurance policy. b. Received...
a. Paid $6,400 cash in advance on April 1 for a one-year insurance policy. b. Received a $14,700 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting September 1. C. Purchased $1,800 of supplies on account. At year's end, $140 of supplies remained on hand. d. Pald $5,400 cash in advance on March 1 for a one-year lease on office space. Event Adjustment The Accounting Equation Total Assets Cash Other Liabilities...
Vertigo Company paid $10,000 on July 1, 2009, for a two-year insurance policy. It was recorded...
Vertigo Company paid $10,000 on July 1, 2009, for a two-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment Vertigo will make to properly report expenses when preparing the December 31, 2009, financial statements. (Assume no previous adjustments to prepaid insurance have been made) (Do not round until the final answer, then round to the nearest dollar. Use parentheses or a minus sign when entering account decreases Use only the necessary input...
repaid Insurance—Annual Adjustments On April 1, 2017, Stratton, Inc., purchases a 24-month property insurance policy for...
repaid Insurance—Annual Adjustments
On April 1, 2017, Stratton, Inc., purchases a 24-month property
insurance policy for $79,200. The policy is effective immediately.
Assume that Stratton prepares adjustments only once a year, on
December 31.
Required:
1. Compute the monthly cost of the insurance
policy.
$per month
2. Identify and analyze the transaction to
record the purchase of the policy on April 1, 2017.
Activity
Accounts
Statement(s)
How does this entry affect the accounting equation?
If a financial statement item is...
On 10/1/21, XYZ paid KLM 12,000 for a one year fire insurance policy. 1.)If XYZ recorded...
On 10/1/21, XYZ paid KLM 12,000 for a one year fire insurance policy. 1.)If XYZ recorded the purchase of insurance to a permanent account, the adjusting entry on 12/31/21 is: if the company fails to make an adjusting entry, the impact on the accounting equation is: 1 2.) If XYZ recorded the purchase of insurance to a temporary account, the adjusting entry on 12/31/21 is: "Dr pre payss if the company fails to make an adjusting entry, the impact on...
Question #1 Binder Inc. purchased a 1 year Insurance policy for $2,400 on November 1,2015 with...
Question #1 Binder Inc. purchased a 1 year Insurance policy for $2,400 on November 1,2015 with coverage starting on that date. A) What entry is made on 11/115 Cr B) What adjusting entry is to be made on 12/31/15 Cr C) What is the balance in the prepaid insurance after the adjusting entry is made? ubmit Question 0 of S Attempts Used acBookA 0 Question #2 Clay Inc. rents office space to another business for $1,500 per month. On October...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Stratton, Inc., purchases a 24-month property insurance policy for...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Stratton, Inc., purchases a 24-month property insurance policy for $96,000. The policy is effective immediately. Assume that Stratton prepares adjustments only once a year, on December 31. Required: 1. Compute the monthly cost of the insurance policy. per month 2. Identify and analyze the transaction to record the purchase of the policy on April 1, 2017 Activity Accounts Statement(s) Financing Investing Operating How does this entry affect the accounting equatid If a financial...
Brown Corporation purchased a 1-year insurance policy on March 1 of the current year and paid...
Brown Corporation purchased a 1-year insurance policy on March 1 of the current year and paid the entire premium of $3,600 in advance. The payment was recorded to Prepaid Insurance, and Brown uses a calendar year. Which of the following is the correct adjusting entry for this transaction at the end of the current year?
5. At the end of the October, XYZ Corp. owes employee wages of $750, but hasn't paid them (they will be paid in Nov.) a. What should be recorded to the accounting equation to account for the wages that are owed? Assets Liabilities Equity b. If the above transaction is not recorded at the end of the month, October expenses will be liabilities will be and net income will be (indicate understated or overstated for all three) 6. On March...
New Waves Company paid $3,600 on April 1, 2009, for a three-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment New Waves will make to properly report expenses when preparing the December 31, 2009, financial statements. (Assume no previous adjustments to prepaid insurance have been made.) (Use parentheses or a minus sign when entering account decreases. Use only the necessary input lines.) Assets Liabilities + Shareholders' Equity Contributed Capital + Retained Earnings...
a. Paid $6,400 cash in advance on April 1 for a one-year insurance policy. b. Received a $14,700 cash advance for a contract to provide services in the future. The contract required a one-year commitment, starting September 1. C. Purchased $1,800 of supplies on account. At year's end, $140 of supplies remained on hand. d. Pald $5,400 cash in advance on March 1 for a one-year lease on office space. Event Adjustment The Accounting Equation Total Assets Cash Other Liabilities...
Vertigo Company paid $10,000 on July 1, 2009, for a two-year insurance policy. It was recorded as prepaid insurance. Use the accounting equation to show the adjustment Vertigo will make to properly report expenses when preparing the December 31, 2009, financial statements. (Assume no previous adjustments to prepaid insurance have been made) (Do not round until the final answer, then round to the nearest dollar. Use parentheses or a minus sign when entering account decreases Use only the necessary input...
repaid Insurance—Annual Adjustments
On April 1, 2017, Stratton, Inc., purchases a 24-month property
insurance policy for $79,200. The policy is effective immediately.
Assume that Stratton prepares adjustments only once a year, on
December 31.
Required:
1. Compute the monthly cost of the insurance
policy.
$per month
2. Identify and analyze the transaction to
record the purchase of the policy on April 1, 2017.
Activity
Accounts
Statement(s)
How does this entry affect the accounting equation?
If a financial statement item is...
On 10/1/21, XYZ paid KLM 12,000 for a one year fire insurance policy. 1.)If XYZ recorded the purchase of insurance to a permanent account, the adjusting entry on 12/31/21 is: if the company fails to make an adjusting entry, the impact on the accounting equation is: 1 2.) If XYZ recorded the purchase of insurance to a temporary account, the adjusting entry on 12/31/21 is: "Dr pre payss if the company fails to make an adjusting entry, the impact on...
Question #1 Binder Inc. purchased a 1 year Insurance policy for $2,400 on November 1,2015 with coverage starting on that date. A) What entry is made on 11/115 Cr B) What adjusting entry is to be made on 12/31/15 Cr C) What is the balance in the prepaid insurance after the adjusting entry is made? ubmit Question 0 of S Attempts Used acBookA 0 Question #2 Clay Inc. rents office space to another business for $1,500 per month. On October...
Prepaid Insurance-Annual Adjustments On April 1, 2017, Stratton, Inc., purchases a 24-month property insurance policy for $96,000. The policy is effective immediately. Assume that Stratton prepares adjustments only once a year, on December 31. Required: 1. Compute the monthly cost of the insurance policy. per month 2. Identify and analyze the transaction to record the purchase of the policy on April 1, 2017 Activity Accounts Statement(s) Financing Investing Operating How does this entry affect the accounting equatid If a financial...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago