On December 1, 2014 Golden Acres purchased hazard insurance. On December 31, 2014 an adjusting entry is required to journalize the insurance used in December. Two sliders are provided to evaluate the financial statement impact of changes in the amount and term of the insurance. The slider impact is shown first on a timeline, and then in the T-accounts of the accounting equation. Click here and use the sliders to answer the following questions the dynamic timeline, and the T-accounts. If an answer is zero, enter "0". 5. If the amount of prepaid insurance is $3,600 and the term is 24 months, the Prepaid Insurance balance on Dec. 31, 2014 is $________________. 6. If the amount of prepaid insurance is $2,400 and the term is 18 months, the Prepaid Insurance balance on May 31, 2016 is $_______________.
On December 1, 2014 Golden Acres purchased hazard insurance. On December 31, 2014 an adjusting entry is required to journalize the insurance used in December. Two sliders are provided to evaluate the financial statement impact of changes in the amount and term of the insurance. The slider impact is shown first on a timeline, and then in the T-accounts of the accounting equation. Click here and use the sliders to answer the following questions the dynamic timeline, and the T-accounts. If an answer is zero, enter "0". 5. If the amount of prepaid insurance is $3,600 and the term is 24 months, the Prepaid Insurance balance on Dec. 31, 2014 is $________________. 6. If the amount of prepaid insurance is $2,400 and the term is 18 months, the Prepaid Insurance balance on May 31, 2016 is $_______________.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial Statement Impact
On December 1, 2014 Golden Acres purchased hazard insurance. On December 31, 2014 an
Click here and use the sliders to answer the following questions the dynamic timeline, and the T-accounts. If an answer is zero, enter "0".
| 5. | If the amount of prepaid insurance is $3,600 and the term is 24 months, the Prepaid Insurance balance on Dec. 31, 2014 is $________________. |
| 6. | If the amount of prepaid insurance is $2,400 and the term is 18 months, the Prepaid Insurance balance on May 31, 2016 is $_______________. |
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