on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong? Selected December-January TransactionsPurchased InsuranceStarted Work for TeloDec. 31 Year-EndFinished Work for TeloDec 1Dec 7Dec 13(Dec 24Jan 5Jan 12Purchased SuppliesReceived Cash in AdvanceWages PaidAdditional Information as of December 31Telo Job Completion at Year-EndABX Job Completion at Year-EndTeloABX60% Complete25% CompleteWages Earned By Workers but not yet Paid atSupplies Remaining at Year-EndYear-End 1. Record the journal entries required for December, excluding the December 31 year-end adjusting entries.2. Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue,and (e) unearned revenue.3. Record the journal entries required for January.Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and(e) unearned revenue.View transaction listJournal entry worksheet14 5>Record the insurance coverage that expired.Note: Enter debits before credits.DateGeneral JournalDebitCreditDec 31Insurance expense2,400Prepaid insurance2,400:

Answered: on December 1 he purchased insurance…

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Accounting

on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

on December 1 he purchased insurance for 2 years fro 2400 cash. I put 2400 and its wrong. What am I doing wrong?

Selected December-January Transactions
Purchased Insurance
Started Work for Telo
Dec. 31 Year-End
Finished Work for Telo
Dec 1
Dec 7
Dec 13
(Dec 24
Jan 5
Jan 12
Purchased Supplies
Received Cash in Advance
Wages Paid
Additional Information as of December 31
Telo Job Completion at Year-End
ABX Job Completion at Year-End
Telo
ABX
60% Complete
25% Complete
Wages Earned By Workers but not yet Paid at
Supplies Remaining at Year-End
Year-End

1. Record the journal entries required for December, excluding the December 31 year-end adjusting entries.
2. Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue,
and (e) unearned revenue.
3. Record the journal entries required for January.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Record the December 31 year-end adjusting entries for (a) prepaid insurance, (b) supplies, (c) accrued wages, (d) accrued revenue, and
(e) unearned revenue.
View transaction list
Journal entry worksheet
1
4 5
>
Record the insurance coverage that expired.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 31
Insurance expense
2,400
Prepaid insurance
2,400:

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As per the accrual method of accounting, we need to accrue the expenses which incur in a particular accounting period.

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