On 1/4/2021, Europa Insurance Limited entered into an insurance contract witha customer who paid the annual premium of $300,000 on that date.State, to the nearest whole dollar, the amount Europa Insurance Ltd wouldreport as a liability at 30 June 2021. On 1/3/2021, Europa Insurance Limited entered into an insurance contract witha customer who paid the annual premium of $300,000 on that date.State, to the nearest whole dollar, the amount Europa Insurance Ltd wouldreport as revenue for the year ended 30 June 2021.300,000

Amount of revenue that is received in advance for the future period of time is known as unearned…

On 1/4/2021, Europa Insurance Limited entered into an insurance contract with a customer who paid the annual premium of $300,000 on that date. State, to the nearest whole dollar, the amount Europa Insurance Ltd would report as a liability at 30 June 2021.

On 1/4/2021, Europa Insurance Limited entered into an insurance contract with a customer who paid the annual premium of $300,000 on that date. State, to the nearest whole dollar, the amount Europa Insurance Ltd would report as a liability at 30 June 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: help

A: Answer

Q: Windsor Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company.…

A: Journal entries should not be used to record routine transactions such as customer charges and…

Q: You can afford a $500.00 per month car payment. You can get a loan at 8% interest for 4 years. A.…

A: Loan: When money is lent to another party in return for regular repayment of the loan principal…

Q: Ivanhoe Roads accepted a customer's $101400 zero-interest-bearing six-month note in a sales…

A: Lets understand the basics.Interest Revenue is the amount of interest earned on interest-bearing…

Q: on 1 January 2023. Assume that the aggrement on debt refinancing was signed on 30 December 2022. (i)…

A: i) Reporting of Liability by Hai-Inkam Bhd (HIB)Hai-Inkam Bhd (HIB) would report the liability as a…

Q: PAYROLL LIABILITY: On 15 September 2020, Speedy directly transferred $30,000 to employees' bank…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: At December 31, 2017, Burr Corporation owes $500,000 on a note payable due February 15, 2018. (a) If…

A: Current liabilities: Current liabilities are the liabilities that are payable within a period of one…

Q: What should be the balance of the Discount on Notes Payable account on the books of ABC Company at…

A: Note payable- A promissory note or written agreement is referred to as a note payable. The…

Q: The company reports a note payable amounting 10 RM45,000, which due on 31 August 2023.The company…

A: Think of a company's money as our own. They divide what they owe into two groups: stuff they have to…

Q: "On 1 September 2014, Select Company borrowed P600,000 from a bank and signed a 12%, six-month note…

A: Borrowed amount = P 600,000 Interest rate = 12% Period from 1 September 2014 to 31 December 2014 = 4…

Q: Your answer is incorrect. If Bridgeport refinances the obligation by issuing a long-term note on…

A: Liabilities are the debts owed by the corporation to third parties. It is a legal duty imposed on a…

Q: KPL Ltd has a year end of 31 March 2021. During the year it paid £1,600 for rent. At the start of…

A: Amount that charged to the income statement is amount that accrued during the year. Assuming KPL ltd…

Q: Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note…

A: Introduction: Liabilities are legally binding promises that must be paid to some other person or…

Q: Do not use Ai

A: a. Record the sale of the merchandise and warranties:Since Madison Co. sells merchandise and…

Q: A company showed the following information in its payroll register for the week ended March 16,…

A: Payroll deductions refer to the various amounts that are subtracted from an employee's gross pay to…

Question

On 1/4/2021, Europa Insurance Limited entered into an insurance contract with
a customer who paid the annual premium of $300,000 on that date.
State, to the nearest whole dollar, the amount Europa Insurance Ltd would
report as a liability at 30 June 2021.

On 1/3/2021, Europa Insurance Limited entered into an insurance contract with
a customer who paid the annual premium of $300,000 on that date.
State, to the nearest whole dollar, the amount Europa Insurance Ltd would
report as revenue for the year ended 30 June 2021.
300,000

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

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Guarantees and Warranties

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

On October 1, 2021, Sheffiled Corporation issued $500, 000 of 10 year, 5& bonds at 100. Interest is payable semi-annualy on October 1 and April 1. Sheffield's year end is December 31 and the company records adjusting entries annually. Identify what amounts, if any, Sheffield would report as a current liability and non current liability with respect to the bond and bond intereset accounts on December 31, 2021.
On January 1, 2021, Winn Heat Transfer leased office space under a three-year operating lease agreement. The arrangement specified three annual lease payments of $72,000 each, beginning December 31, 2021, and at each December 31 through 2023. The lessor, HVAC Leasing calculates lease payments based on an annual interest rate of 8%. Winn also paid a $231,000 advance payment at the beginning of the lease. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $303,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required:Prepare the appropriate entries for Winn Heat Transfer from the beginning of the lease through the end of 2023. Winn’s fiscal year is the calendar year. (If no entry is required for a transaction/event, select…
On June 30, 2024, the Esquire Company sold some merchandise to a customer for $68,000. In payment, Esquire agreed to accept a 9% note requiring the payment of interest and principal on March 31, 2025. The 9% rate is appropriate in this situation. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2024 interest accrual, and the March 31, 2025 collection. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over- or understated in 2024 and 2025?
On May 14, a prospect completes an applicalion for insurance. The producer collects the initial premium and issues a conditional receipt. The insurance company determines that the prospedt is insurable and issues a standard policy on May 26. If the producer delivers the policy to the insured on June 1, the effective date of coverage is A. May 14 B. May 24 C. May 26 D. June 1