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

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,...

See similar textbooks

Related questions

Q: Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of…

A: Prepaid insurance is the amount of insurance that is paid by an entity in advance. In other words,…

Q: the amount of interest expense

A: The note payable is a liability account which is a written promissory note.It is usually considered…

Q: National insurance company undertakes insurance business for Motor Vehicles. During the year 2020…

A: Given : Insurance premium = RO 6,000 Claim for the accidents = RO 1200

Q: Agrico Inc. accepted a 10-month, 13% (annual rate), $5,350 note from one of its customers on May 15,…

A: Face value of note = $5,350 Interest Rate = 13% Period (May 15, 2019 to December 31, 2019) = 7.5…

Q: On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance…

A: Insurance premium for a month = Total premium collected / Period of insurance = $24,000 / 24 months…

Q: (12.13 X Co sells goods with a one year warranty and had a provision for warranty claims of $64,000…

A: Warranty expense is the expected cost to be incurred for the repair or replacement of goods that…

Q: On November 1, Mead borrowed from Miller, giving him a $6,000, 3 month, 9% note, interest payable at…

A: b. $ 90

Q: A company purchased a certificate of deposit (a short-term investment that pays interest to the…

Q: structions: repare the entries in the Journal

A: Step 1 Journal is the Part of Book keeping.

Q: On July 8, Jones Inc. issued an $71,300, 10%, 120-day note payable to Miller Company. Assume that…

A: Definition: Accrued interest: Accrued interest is the outstanding interest expense in the…

Q: On September 1, 2019, a company borrowed cash and signed a 1-year,interest-bearing note on which…

A: the current liabilities are the liabilities that are to be paid off within one year.

Q: I am not sure how to put this balance sheet together? Based on the following information and the…

A: Balance sheet: This financial statement reports a company’s resources (assets) and claims of…

Q: lowing is not considered a current liability? a. Accounts Payable b. Unearned Revenue c. the…

A: There are three types of main components of a firm's balance sheet: 1)Owner's equity, 2) Liabilities…

Q: Current and Noncurrent Liabilities Complete Cogburn's December 31, Year 4, balance sheet using the…

A: Workings: 1) Total unearned revenue received of $ 150000 to be recorded by passing an entry; Cash…

Q: a. Journalize the write-offs for 2019 under the direct write-off method. b. Journalize the…

A: Journal Entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: y 8, Jones Inc. issued an $79,100, 6%, 120-day note payable to Miller Company. Assume that the…

A: In the given situation, there is a note payable with 6% rate for 120 days. We need to find the…

Q: On 9/1, the Knight's Stop issues a new the previous year. The new part was is: On 9/1, Knight's Stop…

A: Warranty are provided to customers and warranty are laibilties of customers to company for warranty…

Q: Required: a. What was the total of accounts written off during the first 11 months? (Hint Make a…

A: Solution:- Given, On January 1, 2019, the balance in Tabor Co.'s allowance for Bad debts account was…

Q: Our business opened a 1-year term deposit account of 180.000 TL on 01.08.2020. The interest rate is…

A: Date of deposit: 01.08.2021 Rate of Interest = 16% Accural date 31.12.2021

Q: Which of the following accounts could not be classified as a current liability? Multiple Choice…

A: Current liabilities are those liabilities that are due within one year or within a normal operating…

Q: ments ing & heating expense' in Angela's Income St (b) Belinda is a sole trader. Her business's…

A: Given that: Annual maintenance costs = $325

Q: A property/casualty insurer sold a one-year insurance policy for $480 on July 1. The insurer…

A: According to the relevant provision, the policy amount is required to be deferred over the life of…

Q: On 9/1, Knight's Stop would debit which account for the journal entry? O Accounts Receivable O…

Q: On July 8, Jones Inc. issued an $72,300, 7%, 120-day note payable to Miller Company. Assume that the…

A: Solution: Jones Inc should recognize the interest expense for 23 days. = From July 8 to July 31= 23…

Q: I am having trouble with my homework Based on the following information and the post-closing trial…

A: A balance sheet is a type of financial statement that summaries an organization's assets,…

Q: On July 8, Jones Inc. issued an $69,300, 6%, 120-day note payable to Miller Company. Assume that the…

A: Notes payable is a negotiable instrument signed by the promisor who agreed to pay a certain amount…

Q: Fink Insurance collected premiums of $18,300,000 from its custómersi during the current year. The…

A: Revenue from insurance premium recognized for the current year = Beginning Deferred premium revenue…

Q: 72. JK Company reported that all insurance premiums paid are debited to prepaid insurance. The…

A: Given, Beginning balance of prepaid insurance = 100,000 Charge to insurance expense = 440,000 Ending…

Q: below, prepare

A: Journal is the book of prime entry. In accruaval basis of…

Q: On July 1, Alton Co. issued an $74,700, 10%, 120-day note payable to Seller Co. Assume that the…

A: Interest will be recognized on $74700 and the interest rate charged is 10%. Amount of interest…

Q: Entity A received a 10%, P200,000, one-year, note receivable on July 1, 20x1. Entity A uses a…

A: Adjusting entries are those journal entries which are passed in order to reflect all incomes,…

Q: Liabilities on the Balance Sheet For each of the following situations, indicate the amount shown as…

A: A liability is an obligation of a business that causes it to forfeit future financial gains to other…

Q: On May 14, a prospect completes an applicalion for insurance. The producer collects the initial…

A: The effective date of insurance policy is the date when insurance company legally liable under the…

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
F1
F2
F3
F4
F5
AD
F6
F7
F8
F9
F10
F11
F12
PRTSC
SYSRQ
#3
4
&
7
*
6.
V
7.
HOME
PGUP
W
Y
P
DIF
H.
i
J
K
ENO
--

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Sensible Insurance Company collected a premium of $18,000 for a 1-year insurance policy on April 1. What amount should Sensible report as a current liability for Unearned Service Revenue at December 312 Select one: a. $4,500. b. $18,000. C. $0. d. $13,500.
A homeowner’s policy was cancelled by the Illinois insurance guaranty fund due to insolvency of the insurance company the unearned premium was $625.00. What is the premium refund due the insured for the unexpired policy period? A.$0 B.$525 C.$625 D.$1150
7)Neal Insurance Company collected a premium of $15,000 for a 1-year insurance policy on May 1. What amount should Neal report as a current liability for Unearned Insurance Premiums on December 31? a)$10,000. b)$13,500. c)$15,000. d)$5,000
An insurance company notifies an insured thal $50 of lhe insured's physician's charge is above he usual, customary, and reasonable limits covered by the Major Medical policy. In this situation, the excess amount would be. A.applied to the deductible B.paid at he 80/20 coinsurance rate C.disallowed as a covered charge D.charged back o the physician
An examination of Insurance Policies of Standard Company is presented below: Policy Date of Purchase Life of Policy Cost September 1, 2019 4years P25,920 May 1, 2020 2years 18,960 July 31, 2020 1year 9,720 Prepaid Insurance was debited for the cost of each policy at the time of its purchase. Expired insurance was correctly recorded at the end of 2019. What is the balance of Prepaid Insurance at the end of 2020?
The рroduction deрartment of an insurance comрany reрorted Ρhр 45,121.00 insured рolicy by an insurance agent. What was the commission rate of the agent who receives Ρhр 3,390 as his commission last month.
Dark Inc. paid P72,000 to renew the only insurance policy for three years on March 1, 2021, the effective date of the policy. On March 31, 2021, the unadjusted trial balance showed a balance of P3,000 for prepaid insurance and P72,000 for insurance expense. What amount should be reported for prepaid insurance on March 31, 2021?a. 55,000b. 70,000c. 65,000d. 60,000
Under Fierce Company’s accounting system, all insurance premiums paid are charged to insurance expense. Information for the year ended December 31, 2020 is as follows: Prepaid insurance, beg. P150,000 Renewal of insurance charged to expense during the year applicable for the period April 1, 2020-2021 is P500,000. What is the insurance expense using the accrual basis accounting?
F.22.
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
45. South Company reported that all insurance premiums paid are debited to prepaid insurance. The entity provided the following information for the current year: Prepaid Insurance on January 1 Charge to insurance expense Prepaid insurance on December 31 What was the amount of insurance premium paid in the current year? a. 340,000 b. 420,000 100,000 440,000 120,000 c. 440,000 d. 460,000
72. JK Company reported that all insurance premiums paid are debited to prepaid insurance. The entity provided the following information for the current year: 100,000 Prepaid Insurance on January 1 Charge to insurance expense 440,000 Prepaid insurance on December 31 What was the amount of insurance premium paid in the current year? 120,000 a. 340,000 b. 420,000 C. 440,000 d. 460,000