n October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021 to October 1, 2022 in the amount of P190,000. The accounting period ends on December 31, 2021. How much is the Prepaid Insurance Expense reported on the Statement of Financial Position as

Q: On August 31, 2021, A company paid an insurance premium covering the period from August 31, 2021 to…

A: The insurance expense would be recognized on the pro-rata basis. The insurance expense would be…

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: 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: 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: How much is the interest expense to be reported by the company for the year ended December 31, 2022?…

A: Interest expense on note payable is the amount of interest accrued on note payable calculated at the…

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

A: Current liabilities : The obligations owed by a company to creditors and suppliers and are to be…

Q: Refer to the following list of liability balances at December 31, 2019. Accounts Payable $20,000 850…

A: The current liabilities part of a balance statement indicates the debts owed by a corporation that…

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

A: 1.

Q: On August 1, 2020, a company borrowed cash and signed a one-year interest-bearing note on which both…

A: A current liability is a liability that has a settlement period of less than 12 months whereas a non…

Q: 1. Determine the estimated warranty liability on December 31, 2022. 2. Analyze the estimated…

A: Answer: We are given  First year warranty = 4%  Second year warranty = 10%

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

A: Compute the insurance expense for one month:

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: For the year ended Dec. 31, 2020, The Company paid interest totaling P100,000. The prepaid interest…

A: Interest expense refers to the cost which is incurred through the entity for the borrowed funds. It…

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: 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: On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021…

A: Prepaid insurance : In some cases, the benefit of amount already spent and also paid relates to next…

Q: Midshipmen Company borrows $11,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount…

A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…

Q: On October 1, 2020, an entity borrowed cash and signed a three-year interest bearing note on which…

A: In the given case an entity borrowed cash and signed a three-year interest bearing note on which…

Q: During 2019, P determined that insurance premiums of $12289 for the 3-year period beginning January…

A: Given, Insurance premiums paid for 3 years=$12,289Income tax rate=37%

Q: Philip Company has a P200,000, 9%, 120-day note receivable outstanding on December 31. The note is…

A: Here in this question, we are required to pass journal entry for the interest accrual. When any…

Q: For the year ended Dec. 31, 2019, Nando Company paid interest totaling P100,000. The  prepaid…

A: Interest expense is an expense that is due on the amount borrowed from the lender. It is reported in…

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: 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 October 1, 2021, ABC Company paid an insurance premium covering the period from October 1, 2021…

A: Insurance expense per month = Total amount paid / Total period of service Prepaid Insurance Expense…

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: At December 31, 2021, Sheridan Company had a five-month, 5%, $79,200 note receivable that was issued…

A: Adjusting Journal Entry While preparing adjusting journal entry which brings more fairness in the…

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…