It is the end of January 20x1. At the beginning of January 20x1 your company entered and paid a bill from Business Insurance Associates for the annual insurance premium. A copy of the bill is below along with the asset section of the balance sheet after all the month-end closing tasks have been completed. What is wrong at January 31, 20x1? INVOICEINVOICE # V710Business Insurance AssociatesDATE: JANUARY 1, 20X1590 Main St.Payment Terms Due Upon ReceiptDallas, TX 75023TO Student Company123 Main StreetSHIP Student Company123 Main StreetTODallas, TX 75023Dallas, TX 75023214-555-1212214-555-1212UNITQTYITEM #DESCRIPTIONDISCOUNTLINE TOTALPRICE12Annual Business Insurance Coverage100$1,200Term of Policy:1/1/20x1 - 12/31/20x1SUBTOTAL$1,200ТOTAL$1,200.00THANK YOU FOR YOUR BUSINESS! Student CompanyBalance SheetAs of January 31, 20x1TotalASSETSCurrent Assets$ 7,000.001,450.004,425.001,200.00$ 14,075.00$ 14,075.00100 Checking120 Accounts Receivable130 Inventory Asset135 Prepaid InsuranceTotal Current AssetsTOTAL ASSETS

Prepaid insurance is an current asset which represents unexpired insurance expense. Companies…

Answered: It is the end of January 20x1. At the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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It is the end of January 20x1. At the beginning of January 20x1 your company entered and paid a bill from Business Insurance Associates for the annual insurance premium. A copy of the bill is below along with the asset section of the balance sheet after all the month-end closing tasks have been completed. What is wrong at January 31, 20x1?

INVOICE
INVOICE # V710
Business Insurance Associates
DATE: JANUARY 1, 20X1
590 Main St.
Payment Terms Due Upon Receipt
Dallas, TX 75023
TO Student Company
123 Main Street
SHIP Student Company
123 Main Street
TO
Dallas, TX 75023
Dallas, TX 75023
214-555-1212
214-555-1212
UNIT
QTY
ITEM #
DESCRIPTION
DISCOUNT
LINE TOTAL
PRICE
12
Annual Business Insurance Coverage
100
$1,200
Term of Policy:
1/1/20x1 - 12/31/20x1
SUBTOTAL
$1,200
ТOTAL
$1,200.00
THANK YOU FOR YOUR BUSINESS!

Student Company
Balance Sheet
As of January 31, 20x1
Total
ASSETS
Current Assets
$ 7,000.00
1,450.00
4,425.00
1,200.00
$ 14,075.00
$ 14,075.00
100 Checking
120 Accounts Receivable
130 Inventory Asset
135 Prepaid Insurance
Total Current Assets
TOTAL ASSETS

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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