C) Prepaid Insurance $9,900. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2018, for $7,200. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2019, for $4,500.This policy has a term of 2 years Instructions: prepare adjusting entries and post insurance policy in ledger in 31\12\2019

C) Prepaid Insurance $9,900. The company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on April 1, 2018, for $7,200. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on January 1, 2019, for $4,500.This policy has a term of 2 years Instructions: prepare adjusting entries and post insurance policy in ledger in 31\12\2019

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 24E: Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January...

See similar textbooks

Similar questions

Prepare all journal entries and adjusting journal entries necessary to record all of Red Robin's transactions related to the note payable information below: Red Robin borrowed money to purchase a vehicle this year for $47,210. The vehicle loan is an installment loan with a 6-year life and 8% interest due quarterly. The vehicle was purchased on April 1, so the first loan payment is due June 30. See amortization table below: Vehicle Loan Amortization Principal Interest Years Payments/year Payment Date 6/30/22 9/30/22 12/31/22 3/31/23 6/30/23 9/30/23 12/31/23 3/31/24 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 9/30/26 12/31/26 3/31/27 $47,210 8.00% 6 4 2,496 Interest Principal Payment Balance 47,210 45,658 44,075 42,461 944 1,552 913 1,583 882 1,615 849 816 2,496 2,496 2,496 1,647 2,496 1,680 2,496 783 1,713 2,496 748 1,748 2,496 1,783 2,496 1,818 2,496 2,496 713 678 641 1,855 604 1,892 2,496 567 1,930 2,496 323 280 1,968 2,496 2,007 2,496 2,496 2,496 2,496…
Please help me
Fall Company operates a retail grocery store that is required by law to collect refundable deposits of P5 on soda cans. Information for 2018 follwos: Liability for refundable deposits – January 16, 2019 150,000 Cans of soda sold 100,000 Soda cans returned 110,000 On February 1, 2018, Fall company subleased space and received a 25,000 deposit to be applied against rent at the expiration of the lease in 2020. In the December 31, 2019 statement of financial position, what amounts should be reported as current liabilities for deposits?
On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium of P2,000. Commission expense incurred on the reinsurance contract issued is 10%. How much is the amount due from ceding company (book of reinsurer)? How much is the amount of commission income recognized by cedant?
Bramble Company purchased a building on January 2 by signing a long-term $606000 mortgage with monthly payments of $5100. The mortgage carries an interest rate of 10 percent. The entry to record the first monthly payment will include a credit to the Mortgage Payable account for $5100. O credit to the Cash account for $5050. O debit to the Interest Expense account for $5050. O debit to the Cash account for $5100.
Assurance-Type Warranty Clean-All Inc. sells washing machines with a 3-year assurance-type warranty. In the past, Clean-All has found that in the year after sale, warranty costs have been 3% of sales; in the second year after sale, 5% of sales; and in the third year after sale, 7% of sales. The following data are also available: Required: 1. Prepare the journal entries for the preceding transactions for 20192021. Closing entries are not required. 2. What amount would Clean-All report as a liability on its December 31, 2021, balance sheet, assuming the liability had a balance of 88,200 on December 31, 2018? 3. Next Level How would the failure to recognize a contingent liability affect the financial statements?
Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019
Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1, 2018, Banks Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Banks Hardware Store for the following transactions. A. Note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019.
On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Fell Company operates a retail grocery store that is required by law to collect refundable deposits of P5 on soda cans. Information for the current year follows: Liability for refundable deposit - January 1 Cans of soda sold 150,000 100,000 110,000 Soda cans returned During the current year, the entity subleased space and received a P25,000 deposit to be applied against rent at the expiration of the lease in 5 years. What amount should be reported as current liability for deposit on December 31?
Montague Auto Repair specializes in the repair of foreign car transmissions. To encourage business, Montague offers a 6-month warranty on all repairs. The following data are available for 2019: Transmissions repaired, 2019 4,800 Expected frequency of warranty claims 0.09 per repair Actual warranty claims, 2019 $137,750 Estimated warranty liability, 1/1/19 $25,000 Estimated cost of each warranty claim $300 Assume that warranty claims are paid in cash. Required: 1. Compute the warranty expense for 2019. 2. Prepare the entry to record the payment of the 2019 warranty claims. 3. Conceptual Connection: What is the December 31, 2019, balance in the warranty liability account? Why has the balance in the warranty liability account changed from January 1, 2019?