I need assistance findout outthe amount of this expense. Itried putting $1,200 and it wasincorrect. I also tried $200.Please assist. Ty!One month of liability insurancehas expired as of February29, 2024.Recall that on 02/01/2024, $1,200 was paid in advance forsix months of liability insurance,and the entire amount wasrecorded as an expense. Adjustas appropriate.

Approach to solving the question:Freeform Detailed explanation: Original Scenario:You paid $1,200…

Answered: I need assistance findout out the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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Mr. Pitt has relented and agrees to provide you with the information necessary to converthis cash basis financial statements to accrual basis statements. He provides you with the following transactioninformation for the fiscal year ending December 31, 2018:1. A new comprehensive insurance policy requires an annual payment of $12,000 for the upcoming year. Coverage began on September 1, 2018, at which time the first payment was made.2. Mr. Pitt allows customers to pay using a credit card. At the end of the current year, various credit card companies owed Mr. Pitt $6,500. At the end of last year, customer credit card charges outstanding were $5,000.3. Employees are paid once a month, on the 10th of the month following the work period. Cash disbursementsto employees were $8,200 and $7,200 for January 10, 2019, and January 10, 2018, respectively.4. Utility bills outstanding totaled $1,200 at the end of 2018 and $900 at the end of 2017.5. A physical count of inventory is always taken at the…
On 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?
What if the invoice date is 12/27, but the invoice is about next year's sevices, should we record the acount payable at 12/31 for this invoice?
make journal entries for recording interest income and interest received and recognition of FV at dec31, 2023, 2024, and 2025. the entries should be: to record interest collected (3 lines) to record Fair value adjustment to record interest collected (3 lines) to record Fair value adjustment to record interest collected (3 lines) to record gain or loss Dont use AI Tools. Thank you
56. 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)
If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium, which was paid on July 1, what entry would be needed to adjust the Prepaid Insurance account at the end of December, before preparing the financial statements?
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 is
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Using the given information, calculate the amount in respect of Subscription that is needed to be credited into Income and Expenditure account. Also show various ledger accounts. During the Current year (2020), subscription received in Cash is $ 50,000. It also includes the amount that is receivable during the previous year (2019) of $ 2,500 and amount received in advance for next year (2021) for $1,500. Also there is an outstanding receivable for 2020 of $ 4,500.
Francis Mayberry, M.D., maintains the accounting records of Mayberry Clinic on a cash basis. During 2020, Dr. Mayberry collected $134,269 from her patients and paid $50,926 in expenses. At January 1, 2020, and December 31, 2020, she had accounts receivable, unearned service revenue, accrued expenses, and prepaid expenses as follows. (All long-lived assets are rented.) January 1, 2020 December 31, 2020 Accounts receivable $8,768 $14,914 Unearned service revenue 2,908 3,733 Accrued expenses 3,444 2,049 Prepaid expenses 1,835 3,239 Prepare a schedule that converts Dr. Mayberry’s "excess of cash collected over cash disbursed" for the year 2020 to net income on an accrual basis for the year 2020.
Received a $2 cash deposit on December 10 from a hospital for a contract to start January 5, 2019. Record the transaction.
JJ Company purchased a P2,000,000 ordinary life insurance policy on its president and the company is the named beneficiary. Additional data are available for the year ended December 31, 2019: Cash surrender value, January 1 P87,000 Cash surrender value, December 31 108,000 Annual premium paid in advance on January 1 40,000 Dividend received on July 1 6,000 How much should JJ Company report as life insurance expense for 2019?

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