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

Q: Maple Tree Inc. purchased a 12-month 2019, the adjusting journal enty O a debit to Pre

A: Journal entry is defined as recording of the business transactions into the books of accounts of the…

Q: Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense.…

A: Answer  Prepaid insurance expenses in beginning of year is considered  expenses on Accrual basis in…

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 the 1 September 2019 Jacobson Limited paid insurance premiums of $18,000 for 12 months to 31…

A: Journal: Recording of a business transactions in a chronological order. First step in the process of…

Q: Erza Company has a P180,000, 10%, 90-day note receivable outstanding at December 31. The note is…

A: Interest receivable is interest accrued but not received. Interest receivable is an asset. Increase…

Q: Bill's Barber shop signed a one-year 7% bak loan payable in the amount of 5,000 on April 1,…

A: Adjusting entries is defined as the changes that are made to the journal entries that have been…

Q: On January 18, 2019, Big City Co, paid $36,000 for a two-year insurance premium that covers February…

A: 1.

Q: Vaughn Company borrowed $31,200 on November 1, 2025, by signing a $31,200, 9%, 3-month note. Prepare…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: Prepare journal entry for Windsor, Inc. to record the receipt of the proceeds of the note.  Prepare…

A: Solution:- Given, Windsor, Inc. borrows $67,200 from Wildhorse Co.  Signing a 4%, one-year note…

Q: a. Using the Asset Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal…

A: The prepaid expenses are the expenses that are paid in advance by the business. The prepaid expenses…

Q: On September 1, 2019, Melanie Corp. borrowed $101,000 in cash and executed a 6-percent,…

A: The total rate of investment a lender pays on a debt obligation during the course of borrowing is…

Q: Under M. Sabio Company’s accounting system, all insurance premiums paid are debited to prepaid…

A: Total amount of insurance premiums paid by M. Sabio during 2019= Prepaid Insurance at December 31,…

Q: On June 7,2019, Dilby Mechanical Corp completed $50,00 of servicing work for a client and billed…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: At 31 October 2019 before any year-end adjustments, a companies insurance expense had a normal…

A: Adjusting entry means where some adjustment need to be made at the end of specified period for…

Q: Requlred Information [The following information applies to the questions displayed below.] A company…

A: Compute the insurance expense for one month:

Q: A company makes the payment of a one-year insurance premium of $4,584 on March 1, 2019.   c.…

A: Prepaid insurance is considered a prepaid expense. It is a payment made to the insurer in advance…

Q: A one year insurance premium of $4,400 was paid on October 1, 2021 by the Cool Company, for coverage…

A: Insurance expense for the 2021 = total insurance premium paid x no. of month  for 2021 / total…

Q: At December 31, 2022, before any year-end adjustments, Blossom Company Prepaid Insurance account had…

A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…

Q: Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense.…

A: Prepaid insurance on December 31, 2020 = Total premium paid x No. of months / 12 months = P500,000 X…

Q: Windsor Company borrowed $49,200 on November 1, 2025, by signing a $49,200, 10%, 3-month note.…

A: The adjusting entries are journals made at year-end to correct the account balances. Adjustment…

Q: ABC Inc. purchased a 12-month insurance policy on January 1, 2019 for OMR 2400. At June 30, 2019,…

A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…

Q: On October 1, 2022, Bramble Company issued an $828000, 9%, 9-month interest-bearing note. If the…

A: Under accrual basis accounting, the expenses and revenues are recorded in the period they are…

Q: On November 1, 2023, Tommy Tunes accepted a $15,200, 6-month, 4% note from customer Tammy Notune.…

A: Notes receivable refers to a written, unconditional promise made by an individual or business to pay…

Q: How do you treat a prepaid expense that is divided between two accounting periods? eg( insurance of…

A: JOURNAL ENTRY In The Books of .......................................... Period…

Q: On September 15, 2018, Oliver's Mortuary received a $7,200, nine-month note bearing interest at an…

A: Note Receivable is the amount receivable on account of note received from customer.

Q: Under Fierce Company’s accounting system, all insurance premiums paid are charged to insurance…

A: Journal: It is the first step of recording financial transactions. It is used to prepare the…

Q: On September 1, 2020, Mr. Chu paid P62,940 worth of insurance premium for two years. a. Using the…

A: In this question, we need to make journal entries and adjusting journal entry for the insurance…

Q: A Company purchased an 18-month insurance policy on May 31, 2019 for $3,600. The December 31, 2019…

A: Prepaid insurance is an asset account and is reported on the balance sheet under the category of…

Q: Melanie Corp. borrowed $101,000 cash on September 1, 2019, and signed a one-year 6%,…

A: SOLUTION-   EXPLANATION- INTEREST EXPENSE = 101000 *6%*8/12 = 4040 INTEREST PAYABLE = 101000…

Q: On May 1, 2019, a two-year insurance policy was purchased for P24,000 with coverage effective…

A: Insurance is a protection against risk in which one party agrees to protect othe other in return of…

Q: An examination of Insurance Policies of Standard Company is presented below: Policy Date of Purchase…

A: Here in this question, we are required to calculate the amount that will be there in the prepaid…