.CVN Services purchased a 1-year insurance policy on Marr h 1, 2020 for 240,000. The amount of prepaid insurance is report ed on t ne balance sheet at Dec 31, 2020 is
Q: Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of…
A: Prepaid insurance is the amount of insurance that is paid by an entity in advance. In other words,…
Q: National insurance company undertakes insurance business for Motor Vehicles. During the year 2020…
A: Given : Insurance premium = RO 6,000 Claim for the accidents = RO 1200
Q: Apex Company accepted from a customer P1,000,000 face amount, 6 month, 8% note dated April 1, 2021…
A: Maturity value of note = Face value of note + interest = P1000000 + 1000000*8%*6/12 = P1040000
Q: On October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000.…
A: Maturity date of Note = Issue date + Period = October 1, 2019 + 1 years = October 1, 2020 No. of…
Q: Erza Company has a P180,000, 10%, 90-day note receivable outstanding at December 31. The note is…
A: Interest receivable is interest accrued but not received. Interest receivable is an asset. Increase…
Q: Bill's Barber shop signed a one-year 7% bak loan payable in the amount of 5,000 on April 1,…
A: Adjusting entries is defined as the changes that are made to the journal entries that have been…
Q: On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance…
A: Insurance premium for a month = Total premium collected / Period of insurance = $24,000 / 24 months…
Q: Refer to the following list of liability balances at December 31, 2019. Accounts Payable $20,000 850…
A: The current liabilities part of a balance statement indicates the debts owed by a corporation that…
Q: On November 1, 2021, Ayayai Corp, which uses a calendar year as its fiscal year, signs a $28200, 8%,…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: On September 1, 2019, Donna Equipment signed a one-year, 8% interest bearing note payable for…
A: Note means an instrument acknowledging as debt due from one party to another party. Interest bearing…
Q: Prepare journal entry for Windsor, Inc. to record the receipt of the proceeds of the note. Prepare…
A: Solution:- Given, Windsor, Inc. borrows $67,200 from Wildhorse Co. Signing a 4%, one-year note…
Q: The insurance total of R9000 on 29 February 2020, the end of the financial year, included a premium…
A: As per expense recognition concept, all expenses and revenues relating to the particular period…
Q: Blue Inc. has a year-end of June 30. On December 1, 2020, the company signed a 10-month, 5% note…
A: Interest income for 7 months i.e. from Dec 1, 2020 to June 30 = 28,000 x 5% x 7/12…
Q: On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019,…
A: Given that, Notes payable as on Jan 1 2020 = P1200000 Rate of interest = 12%
Q: pland Company borrowed $40,000 on November 1, 2020, by signing a $40,000, 9%, 3-month note. Prepare…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued…
A: Formula: Interest amount = Loan amount x Interest rate x Time period
Q: Constellation Corp. reported the following liability balances on December 31, 2021: 10% note payable…
A: Current liability are the financial obligation of the business which is supposed to be settled…
Q: Sarah Co. borrowed OR200,000 on January 1, 2019, and signed a two-year note bearing interest at 12%.…
A: Notes payable: Notes payable can be defined as the promissory note issued by the company against the…
Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…
A: Revenues are recognized when cash is collected, and expenditures are recognized when cash is paid…
Q: Charm Company estimates its annual warranty expense as 2% of annual net sales. The following data…
A: Solution: Warranty expense for 2019 = Net Sales * 2% Net sales - P3,200,000 Warranty expense for…
Q: The balance of the Estimated Warranty Liability account was $12,000 on January 1, 2019, and $13,600…
A: When a company sells a product, it generally provides a warranty or guarantee to the customer,…
Q: 16. On October 1, 2020, Zachary's Balloons borrowed $4,000 on a 12%, one-year note payable. Interest…
A: Semiannual Interest = $4,000 * 12% * 6/12 Semiannual Interest = $240
Q: On October 1, 2022, Bramble Company issued an $828000, 9%, 9-month interest-bearing note. If the…
A: Under accrual basis accounting, the expenses and revenues are recorded in the period they are…
Q: Midshipmen Company borrows $16,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount…
A: Solution: Introduction: Journal entry is an accounting entry to record every transaction takes place…
Q: Midshipmen Company borrows $11,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount…
A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…
Q: On August 15, 2022, Pharoah Company signs a $248000, 7%, twelve-month note payable. Which of the…
A: Accrued Interest: The unpaid interest amount that has incurred on the financial obligation till a…
Q: Cryer, Inc. has a $45,000,000 note payable on its balance sheet as of 12/31/19, of which $6,000,000…
A: Total note payable on Dec 31, 2019 = $45,000,000 Notes to be paid in 2020 should be classified as…
Q: ABC Company issued a promissory note with the following terms: Principal: P100,000 Date of note:…
A: Lets understand the basics. At the year end, adjustment entry is required to pass to record correct…
Q: Philip Company has a P200,000, 9%, 120-day note receivable outstanding on December 31. The note is…
A: Here in this question, we are required to pass journal entry for the interest accrual. When any…
Q: For the year ended Dec. 31, 2019, Nando Company paid interest totaling P100,000. The prepaid…
A: Interest expense is an expense that is due on the amount borrowed from the lender. It is reported in…
Q: ncluded in Bonita Company’s December 31, 2020, trial balance are the following accounts: Accounts…
A: Liability refers to the amount which is owned by the company to the outsiders. On the basis of…
Q: On April 1, 2019, Flamengo Co. signed a one-year, 8% interest-bearing note payable for $50,000.…
A: Since you have asked multiple questions we will solve the first question for you as per the policy.…
Q: PART - E Toner Limited ("Toner") borrows $180,000 on 1 July 2020 from Lighthouse Bank and signs a…
A: Promissory Notes - Promissory Notes is the notes accepted by the borrower for the amount borrowed by…
Q: A gift shop signs a three-month note payable on May 1/2020 of OMR 36,000 with an annual interest of…
A: Notes payable may be defined as a liability which occurs when credit sale has been done, and the…
Q: below, prepare
A: Journal is the book of prime entry. In accruaval basis of…
Q: Melanie Corp. borrowed $101,000 cash on September 1, 2019, and signed a one-year 6%,…
A: SOLUTION- EXPLANATION- INTEREST EXPENSE = 101000 *6%*8/12 = 4040 INTEREST PAYABLE = 101000…
Q: 56. The premium on a three- year insurance policy expiring on December 31, 2023, was paid in total…
A: Prepaid insurance period = 3 Years
Step by step
Solved in 2 steps
- Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of fire insurance premium. How much should remain as prepaid insurance on December 31, 2021?The premium on a four-year insurance policy expiring on december 31, 2034 was paid in total on January 1, 2021. If the original payment was recorded as a prepaid asset, the balance in prepaid asset on December 31, 2022 would be a. lower than the balance on december 31, 2021b. lower than the balance on december 31, 2023c. the same as the balance on december 31, 2023d. the same as the original payment DISCUSSHawkies Inc. has an October 31 fiscal year. On August 1, 2020 Hawkies Inc. paid $ 72000 for insurance coverage from August 1, 2020 to July 31, 2021. Calculate prepaid insurance as at October 31, 2020. Round your answer to the nearest dollar. Your Answer:
- The insurance total of R9000 on 29 February 2020, the end of the financial year, included a premium of R3000 that was paid for the period 01 December 2019 to 30 November 2020. Which of the following represents the insurance expense for the year ended 29 February 2020? A) R2 250 B) R9 000 C) R6 000 D) R6 75056. The premium on a three- year insurance policy expiring on December 31, 2023, was paid in total on January 1, 2021. The original payment was initially debited to a prepaid asset account ( prepaid insurance). The appropriate entry on December 31, 2021, to recognize the expiration of one year of the policy would be a Dr. Insurance Expense (2/3 of original payment); Cr. Prepaid Insurance (1/3 of original payment) b Dr. Insurance Expense (1/3 of original payment); Cr. Prepaid Insurance (1/3 of original payment) c Dr. Prepaid Insurance (1/3 of original payment); Cr. Insurance Expense (1/3 of original payment) d Dr. Prepaid Insurance (2/3 of original payment); Cr. Insurance Expense (2/3 of original payment)On August 15, 2022, Pharoah Company signs a $248000, 7%, twelve-month note payable. Which of the following entries correctly records the accrued interest on December 31, 2022? Dr Interest Expense $5786.67 Cr Interest Payable $5786.67 Dr Interest Expense $10850.00 Cr Interest Payable $10850.00 Dr Interest Expense $17360.00 Cr Interest Payable $17360.00 Dr Interest Expense $6510.00 Cr Interest Payable $6510.00
- Erza Company has a P180,000, 10%, 90-day note receivable outstanding at December 31. The note is dated December 1, 2020. The appropriate adjusting entry is made to record accrued interest on the note at year-end. What is the correct adjusting entry on December 31 of the current year? Debit Interest Revenue and credit Interest Receivable, P4,500 Debit Interest Receivable and credit Interest Revenue, P1,500 Debit Interest Receivable and credit Interest Revenue, P4,500 Debit Interest Revenue and credit Interest Receivable, P1,500Perfect Pet Company gave a creditor a 90-day, 6% note payable for $28,000 on December 1, 2019. What amount of interest will be accrued as of December 31, 2019? Where will this amount be reported in the company’s financial statements?ABC Company issued a promissory note with the following terms: Principal: P100,000 Date of note: December 16, 2020 Term: 60 days Rate: 15% What will be the adjusting entry on December 31, 2020? Select the correct response: Dr. Interest Receivable 2,500; Cr. Interest Income 2,500 Dr. Interest Expense 2,500; Cr. Accrued Interest 2,500 Dr. Interest Expense 625; Cr. Accrued Interest 625 Dr. Interest Receivable 625; Cr. Interest Income 625
- On October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis (December 31 as fiscal year end), how much interest expense should be reported in the 2020 income statement? Select one: a. $2,000. b. $4,000. c. $1,000. d. $3,000.KOM pays the following insurance premiums during 2020: Auto accident and liability insurance: Paid 1/1/20 Coverage period 1/1/20—12/31/20 $3,500 Fire, storm, and other casualty insurance: Paid 4/1/20 Coverage period 4/1/20–3/31/22 $5,000 Business liability insurance (a material amount for the company): Paid 5/1/20 Coverage period 5/1/20–4/30/21 $3,000 Complete the statement below. Do not round intermediate calculations. a. If KOM uses the accrual method of accounting, the insurance expense deduction for 2020 is b. If KOM uses the cash method of accounting, the insurance expense deduction for 2020 isOn January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance premiums and recorded the funds in Unearned Revenue. Umbrella records insurance revenue on a monthly basis. How much will be in the Unearned Revenue account on November 30, 2021?
