Corporation purchased a one year insurance policy costing $1200 on 11/1/2013. No adjusting entry was made on 11/30/2013. The company's fiscal year ends on December 31. Prepare the necessary adjusting entry on 2/31/2013 assuming: a. the original entry was made to prepaid insurance: b. the orginal entry was made to insurance expense

Corporation purchased a one year insurance policy costing $1200 on 11/1/2013. No adjusting entry was made on 11/30/2013. The company's fiscal year ends on December 31. Prepare the necessary adjusting entry on 2/31/2013 assuming: a. the original entry was made to prepaid insurance: b. the orginal entry was made to insurance expense

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

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 12RE: Abrat Company failed to accrue an allowance for doubtful accounts of 13,500 in 2019. Upon discovery...

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Which of the following is correct
ABC Inc. purchased a 12-month insurance policy on January 1, 2019 for OMR 2400. At June 30, 2019, The Adjusting Entry should be: Select one: Oa. Debit to Insurance Expense, OMR 1200; Credit to Prepaid Insurance for OMR1200 O b.None of the answers are correct Oc Debit to Insurance Expense. OMR 2400; Credit to Prepaid Insurance for OMR 2400 O d. Debit to Prepaid Insurance, OMR 1400; Credit to Insurance Expense for OMR 1400 Oe. Debit to Prepaid Insurance, OMR 2400: Credit to Cash for OMR 2400 Clear my choice
Masterfalls Corporation purchased a one-year insurance policy in January 2017 for $36,000. The insurance policy is in effect from March 2017 through February 2018. If the company neglects to make the proper year-end adjustment for the expired insurance: Group of answer choices net income and assets will be understated by $30,000. net income and assets will be overstated by $30,000. net income and assets will be understated by $6,000. net income and assets will be overstated by $6,000.
Bravo Company purchased a two-year insurance policy on August 1, 2021 for P28,800. Using an asset method, the reversing entry shall entail? a. A debit to prepaid insurance of P6,000 b. A debit to insurance expense of P6,00 c. A debit to insurance expense of P22,800 d. A credit to insurance expense of P22,800. e. the answer is not given
Masterfalls Corporation purchased a one-year insurance policy in January 2016 for $36,000. The insurance policy is in effect from March 2016 through February 2017, if the company does not make any adjusting journal entries through December 2016 for the expired insurance: net income and assets will be overstated by $6,000. net income and assets will be overstated by $30,000. net income and assets will be understated by $30,000. net income and assets will be understated by $6,000
Abrat Company failed to accrue an allowance for doubtful accounts of 13,500 in 2019. Upon discovery of this error in 2020 prior to making its estimate of doubtful accounts, what correcting journal entry should Abrat make? Ignore income taxes.
Maple Tree Inc. purchased a 12-month insurance policy on March 1, 2019 for $900. At December 31, 2019, the adjusting journal entry to record expiration of this asset will include a: o Debit to Insurance Expense and a credit to Prepaid Insurance for $900 o Debit to Prepaid Insurance and a credit to Insurance Expense for $100 o Debit to Insurance Expense and a credit to Prepaid Insurance for $75 o None of the above
Bravo Company purchased a two-year insurance policy on August 1, 2021 for P28,800. Using an asset method, the adjusting entry shall include?a. A debit to prepaid insurance of P6,000 b. A debit to insurance expense of P6,00 c. A debit to insurance expense of P22,800 d. A credit to insurance expense of P22,800. e. the answer is not given
At December 31, 2022, before any year-end adjustments, Blossom Company Prepaid Insurance account had a balance of $6840. It was determined that $3070 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be: O $6840. O $3770. O $3070. O $3300.
At December 31, 2022, before any year-end adjustments, Splish Brothers Inc. Prepaid Insurance account had a balance of $6960. It was determined that $3120 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be: O $3360. O $3120. $6960. O $3840.
On the 1 September 2019 Jacobson Limited paid insurance premiums of $18,000 for 12 months to 31 August 2020. The entire amount was recorded as an insurance expense when the amount was paid. No adjustments have been made to the accounting records since the payment was made, it is now 30 June 2020 (balance date) process the necessary adjusting journal for the insurance premium.
Under M. Sabio Company’s accounting system, all insurance premiums paid are debited to prepaid insurance. For interim financial reports, M Sabio makes monthly estimated charges to insurance expenses with credits to prepaid insurance. Additional information for the year ended December 31, 2019 are as follows: Prepaid Insurance at December 31, 2018 P120,500 Charges to insurance expense during 2019( including a year- End adjustment of P10,500) 437,500 Prepaid Insurance at December 31, 2019 110,000 What was the total amount of insurance premiums paid by M. Sabio during 2019? P448,000 P427,000 P327,500 P437,500