On May 1 of Year 1 Mills Enterprises paid $3,780 cash for an insurance policy that would provide protection for a one year term. The company’s fiscal closing date is December 31. Based on this information, the amount of  prepaid insurance appearing on the Year 1 Balance Sheet would be

Q: On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery…

A: In accounting adjusting entry refers to that journal entry that are recorded at the end of the…

Q: On September 1, Purifier Company borrowed $12,000 on a 6-month, 4%, short-term note payable. How…

A: Interest expense recorded on December 3 = Amount borrowed  x rate of interest x No. of months / 12…

Q: Bon Nebo Co. sold 13,000 annual subscriptions of Bjorn for $63 during December 20Y5. These new…

A: Current liabilities: Liabilities that are due to be paid within one year or within one operating…

Q: As promise for future payment, Carlock Systems received a six-month, 12% note for $50,000 from a…

A: Interest revenue = Notes receivables x rate of interest x months/12

Q: Bon Nebo Co. sold 12,500 annual subscriptions of Bjorn for $45 during December 20Y5. These new…

A: Current liabilities: Current liabilities are a company's short-term financial obligations that are…

Q: On February 1, Year 1, a company with an August 31 fiscal year-end takes out a five-year, $6,000,000…

A:

Q: On January 1, Year 1, Beatie Company borrowed $400,000 cash from Central Bank by issuing a…

A: Amortization schedule of interest and principal payment for 5 periods is as under:

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: On January 5, Daisy Co., which follows a calendar year accounting, issued $1,000,000 of notes…

A: Long term debt = Total notes payable - current portion = $1000000 - 250000 = $750,000

Q: On December 31, Drexel company estimates that it will pay its employees a 6% bonus on net income…

A: We must first ascertain the net income following the deduction of the bonus in order to compute the…

Q: DALLAS Corp. is preparing the December 31, 2020, year-end financial statements. Following are…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: The following selected transactions relate to contingencies of Classical Tool Makers, Incorporated,…

A: Contingencies refer to potential future events or conditions with uncertain outcomes that may impact…

Q: On January 1 of this year, Diorite borrows $100,000 with a 5%, 9-month loan. Interest is due at…

A: Journal entries means the book of prime entry incuding debit and credit item. Adjusting entry means…

Q: For Atco Finance, record (1) the payment of the $216,000 cash and the receipt of the note receivable…

A: A company may borrow money from another company by signing a note. A note can be long-term or…

Q: During its first year of operations Keene Limited had sales of $76,500. The company offers a 2- year…

A: Warranty liability will be reported on  liabilities section of balancesheet.Warranty expense = Sales…

Q: Justin Company signed a $90,000, three-month, 9% note payable, on December 1. If the accounting…

A: Interest accrued on December 31= Face value of bonds x rate of interest x no. of month/12 = $90000 x…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 4-year, note payable with a 10%…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: The following selected transactions relate to contingencies of Classical Tool Makers, Incorporated,…

A: Step-by-Step Explanations for Contingencies of Classical Tool Makers:1. Warranty Expense:Step 1:…

Q: On October 1, Eder Fabrication borrowed $84 million and issued a nine-month, 15% promissory note.…

A: Prepare the journal entry for the issuance of the note:

Q: thly issues, beginning in January 20Y6. In addition, the business had taxable income of $920,000…

A: Answer : Calculate current liabilities of Bon Nebo Co. Total advance received = $60*40,000 =…

Q: The following selected transactions relate to contingencies of Classical Tool Makers, Incorporated,…

A: Contingencies are probable assets or liabilities that might arise due to events that occurred in the…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5-year, note payable with a 10%…

A: Note payable: The person borrows an amount and issue a note to the lender that he will pay the…

Q: On January 2, 2018, Keystone Company borrowed $60,000 from Bank Three. The loan was to be repaid in…

A: Solution: Total borrowings = $60,000 Annual payments = $10,000 Balance borrowings at Dec, 31, 2019 =…

Q: On January 1, a company borrowed cash by issuing a $430,000, 4%, installment note to be paid in…

A: Amortiazation table:An amortization table is a financial tool that breaks down principle and…

Q: Magenta Company purchased a machine from Pink Corporation on October 31, 2021. In payment for the…

A: Income statement shows company's income and expenses over a period of time.Revenues, Expenses, and…

Q: At the beginning of the year, your company borrows $33,600 by signing a six-year promissory note…

A: Solution A promissory note is a promise made by a party to pay a specified sum to another party at…

Q: Sales revenue for Booker Company for 2023 amounted to $800,000. The products sold carry a six-month…

A: Warranty Expenses:Warranty expenses refer to those repair or replacement expenses that are either…

Q: On December 31, Barrera Company estimates that it will pay its employees a 5% bonus on net income…

A: Step 1:Computation of the bonus payable to the employees:Bonus payable = (Net income-Bonus…

Q: At the beginning of the year, Laurier Inc. had a balance in its warranty liability account of $…

A: When a company sells its products, it gives a warranty for repair/replacement within a certain…

Q: Bon Nebo Co. sold 30,000 annual subscriptions of Bjorn for $105 during December 20Y5. These new…

A: Current liabilities seem to be a business's short financial commitments that must be paid throughout…

Q: a. Provide October 31, 2023, adjusting journal entry to record interest owing on the loan

A: Adjusting journal entry is prepared at the end of particular accounting period. It helps to provide…

Q: The balance of the Estimated Warranty Liability account was $12,000 on January 1, 2019, and $13,600…

A: When a company sells a product, it generally provides a warranty or guarantee to the customer,…

Q: For each of the following situations, indicate the amount shown as current or long-term liability on…

A: The current liability is the liability which is to be paid off within one year.

Q: On January 1, 2021, CPS Co. borrowed $340,000 cash from iLend and issued a five-year $340,000, 4%…

A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…

Q: On July 1, 2020 Walker Inc. signed a $600,000, 15 month, 10% note payable. At due date, the…

A: This is based on bill of exchange, in the given case since note is payable in 15 months and the same…

Q: On July 1, 2020, Thomas Company, which follows calendar year accounting,  issued $240.000 note to be…

A: Long -term debt-  Long term debt refers to the liability which is repaid after 12months or more.…

Q: Required: the adjusting entry on December 31, 2020, will show a credit to interest payable for...

A: Adjusting entry: Adjusting journal entry is made at the end of the fiscal period to reflect the…

Q: Required: 1. Prepare any required adjusting entries at December 31, 2023, for each of the above.…

A: Accounting entries known as "adjusting entries" are made to update account balances and guarantee…

Q: On June 1, 2021, Demer Consulting provides services to a customer for $150,000. To pay for the…

A: The journal entries are prepared to record the day to day transactions of the business during the…

Q: On January 1, 2018, King Inc. borrowed $190,000 and signed a 5- year, note payable with a 10%…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Brooks Inc. issued a $220,000, six-month, 6% note to purchase equipment on August 1, 2022. Brooks…

A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…

Q: On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year…

A: We have the following information: Borrowed OMR 8,000 on October 1, 2019 Note payable is signed…