Mackenzie Insurance Company collected a premium of $15,000 for a 1-year insurance policy onMay 1. What amount should Mackenzie report as a current liability for Unearned InsuranceRevenue at December 31?Select one:a. $5,000.b. $0.C. $10,000.d. $15,000.e. The answer does not existBA On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month,$120,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accruedinterest on January 1 isSelect one:a..127,500127,500Notes Payable..Cashb. The answer does not existC.Notes Payable....125,000Interest Expense..2,500Cash127,500d.Notes Payable..Interest Payable.125,0002,500Cash.127,500e.Notes Payable.125,000Interest Payable..10,000Çash....135,000SHIBAF1F2F3F4F5ADF6F7F8F9F10F11F12PRTSCSYSRQ#34&7*6.V7.HOMEPGUPWYPDIFH.iJKENO--

An unearned insurance premium is a liability account that an insurer uses to record the percentage…

Mackenzie Insurance Company collected a premium of $15,000 for a 1-year insurance policy on May 1. What amount should Mackenzie report as a current liability for Unearned Insurance Revenue at December 31? Select one: a. $5,000. b. $0. C. $10,000. d. $15,000. e. The answer does not exist

Mackenzie Insurance Company collected a premium of $15,000 for a 1-year insurance policy on May 1. What amount should Mackenzie report as a current liability for Unearned Insurance Revenue at December 31? Select one: a. $5,000. b. $0. C. $10,000. d. $15,000. e. The answer does not exist

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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Question

Mackenzie Insurance Company collected a premium of $15,000 for a 1-year insurance policy on
May 1. What amount should Mackenzie report as a current liability for Unearned Insurance
Revenue at December 31?
Select one:
a. $5,000.
b. $0.
C. $10,000.
d. $15,000.
e. The answer does not exist
BA

On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month,
$120,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accrued
interest on January 1 is
Select one:
a.
.127,500
127,500
Notes Payable..
Cash
b. The answer does not exist
C.
Notes Payable...
.125,000
Interest Expense..
2,500
Cash
127,500
d.
Notes Payable..
Interest Payable.
125,000
2,500
Cash.
127,500
e.
Notes Payable.
125,000
Interest Payable..
10,000
Çash....
135,000
SHIBA
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