! Required information E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2 [The following information applies to the questions displayed below.] A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. A two-year insurance premium of $2,880 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1. b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents. Shipping supplies on hand, January 1 of the current year Purchases of shipping supplies during the current year $ 17,000 65,000 11,000 Shipping supplies on hand, counted on December 31 of the current year E4-5 Part 4 4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies? (Do not round intermediate calculations.) Prepaid insurance Shipping supplies
! Required information E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2 [The following information applies to the questions displayed below.] A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following: a. A two-year insurance premium of $2,880 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1. b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents. Shipping supplies on hand, January 1 of the current year Purchases of shipping supplies during the current year $ 17,000 65,000 11,000 Shipping supplies on hand, counted on December 31 of the current year E4-5 Part 4 4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies? (Do not round intermediate calculations.) Prepaid insurance Shipping supplies
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2
[The following information applies to the questions displayed below.]
A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing
information for the adjusting entries, the accountant learned the following:
a. A two-year insurance premium of $2,880 was paid on October 1 of the current year for coverage beginning on that
date. The bookkeeper debited the full amount to Prepaid Insurance on October 1.
b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records
and supporting documents.
Shipping supplies on hand, January 1 of the current year
Purchases of shipping supplies during the current year
$ 17,000
65,000
11,000
Shipping supplies on hand, counted on December 31 of the current year
E4-5 Part 4
4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies? (Do not round
intermediate calculations.)
Prepaid insurance
Shipping supplies](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2Fb969ba8f-4492-4936-9dc1-feccb86e59f9%2Fbcxe86q_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2
[The following information applies to the questions displayed below.]
A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing
information for the adjusting entries, the accountant learned the following:
a. A two-year insurance premium of $2,880 was paid on October 1 of the current year for coverage beginning on that
date. The bookkeeper debited the full amount to Prepaid Insurance on October 1.
b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records
and supporting documents.
Shipping supplies on hand, January 1 of the current year
Purchases of shipping supplies during the current year
$ 17,000
65,000
11,000
Shipping supplies on hand, counted on December 31 of the current year
E4-5 Part 4
4. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies? (Do not round
intermediate calculations.)
Prepaid insurance
Shipping supplies
![!
Required information
E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2
[The following information applies to the questions displayed below.]
A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing
information for the adjusting entries, the accountant learned the following:
a. A two-year insurance premium of $2,880 was paid on October 1 of the current year for coverage beginning on that
date. The bookkeeper debited the full amount to Prepaid Insurance on October 1.
b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records
and supporting documents.
Shipping supplies on hand, January 1 of the current year
Purchases of shipping supplies during the current year
$ 17,000
65,000
11,000
Shipping supplies on hand, counted on December 31 of the current year
E4-5 Part 1
Required:
1. Record the adjusting entry for insurance at December 31 of the current year. (Do not round intermediate calculations. If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
> Answer is complete but not entirely correct.
Transaction
General Journal
Debit
Credit
No
1
a
Insurance expense
Prepaid insurance
720 x
720 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2Fb969ba8f-4492-4936-9dc1-feccb86e59f9%2Fazn7h2l_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
E4-5 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements LO4-1, 4-2
[The following information applies to the questions displayed below.]
A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing
information for the adjusting entries, the accountant learned the following:
a. A two-year insurance premium of $2,880 was paid on October 1 of the current year for coverage beginning on that
date. The bookkeeper debited the full amount to Prepaid Insurance on October 1.
b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records
and supporting documents.
Shipping supplies on hand, January 1 of the current year
Purchases of shipping supplies during the current year
$ 17,000
65,000
11,000
Shipping supplies on hand, counted on December 31 of the current year
E4-5 Part 1
Required:
1. Record the adjusting entry for insurance at December 31 of the current year. (Do not round intermediate calculations. If no entry is
required for a transaction/event, select "No journal entry required" in the first account field.)
> Answer is complete but not entirely correct.
Transaction
General Journal
Debit
Credit
No
1
a
Insurance expense
Prepaid insurance
720 x
720 x
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