Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense. Information for the year ended DECEMBER 31, 2020 is as follows: prepaid insurance, beg. is P150,000; renewal of insurance charged to expense during the year applicable for the period April 1, 2020 - 2021 is P500,000. What is the insurance expense using the accrual basis accounting? A. P275,000 B. P500,000 C. P525,000 D. P650,000 E. answer not given

Q: Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of…

A: Prepaid insurance is the amount of insurance that is paid by an entity in advance. In other words,…

Q: The premium on a four-year insurance policy expiring on december 31, 2034 was paid in total on…

A: Prepaid assets is one of the current asset of the business, which means expenses which are related…

Q: Company Z has a deposit with ABC Bank. It obtained a loan from ASAP Financing Corp. in connection…

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Q: Ben & Ben Music Company carries a wide variety of musical instruments, sound reproduction equipment,…

A: Solution; 1) WARRANTY EXPENSE: Warranty expense (sales) = 5,400,000 Estimated warranty cost = 2%…

Q: Company A received a 5-year Non-interest bearing note payable to Company A on December 31, 2024, P…

A: Given, Note Payable on 31 Dec. 2024 = P 5,000,000 Market Interest Rate = 12%

Q: Included in Sheridan Company's December 31, 2020, trial balance are the following accounts: Accounts…

A: The balance sheet is also known as a statement of financial position considered as one of the most…

Q: Erza Company has a P180,000, 10%, 90-day note receivable outstanding at December 31. The note is…

A: Interest receivable is interest accrued but not received. Interest receivable is an asset. Increase…

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: Refer to the following list of liability balances at December 31, 2019. Accounts Payable $20,000 850…

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Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

A: Solution : To record installment payment of note, cash is credited with installment amount; Interest…

Q: On August 1, 2020, a company borrowed cash and signed a one-year interest-bearing note on which both…

A: A current liability is a liability that has a settlement period of less than 12 months whereas a non…

Q: The insurance total of R9000 on 29 February 2020, the end of the financial year, included a premium…

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Q: 1. Determine the estimated warranty liability on December 31, 2022. 2. Analyze the estimated…

A: Answer: We are given  First year warranty = 4%  Second year warranty = 10%

Q: On Jan. 1, 2020, EC Company reported a note payable of P 1,200,000. The note is dated Oct. 1, 2019,…

A: Given that,  Notes payable as on Jan 1 2020 = P1200000  Rate of interest = 12%

Q: The following amortization schedule indicates the interest and principal that Chip's Cookie…

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Q: On September 1, 2019, a company borrowed cash and signed a 1-year,interest-bearing note on which…

A: the current liabilities are the liabilities that are to be paid off within one year.

Q: On December 31, 2020, Glare Company provided the following information: Accounts payable, including…

A: A liability occurs when a company has undergone a transaction that has generated an expectation for…

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Q: Godo At May 31, 2019, FOR Deliveries reported the following amounts (in millions) in its financial…

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Q: Our business opened a 1-year term deposit account of 180.000 TL on 01.08.2020. The interest rate is…

A: Date of deposit: 01.08.2021 Rate of Interest = 16% Accural date 31.12.2021

Q: 5. On July 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. Assame tht t…

A:

Q: Entity A received a 12%, ₱200,000, one-year, note receivable on October 1, 20x1. Entity A uses a…

A: Note receivable- It is type of financial instrument which is given to the entity at a fixed rate of…

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A: Semiannual Interest = $4,000 * 12% * 6/12 Semiannual Interest = $240

Q: On October 1, 2022, Bramble Company issued an $828000, 9%, 9-month interest-bearing note. If the…

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

Q: On October 1, 2020, an entity borrowed cash and signed a three-year interest bearing note on which…

A: In the given case an entity borrowed cash and signed a three-year interest bearing note on which…

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A: Accrued Interest: The unpaid interest amount that has incurred on the financial obligation till a…

Q: None

A: How to determine the restaurant's deduction in this scenario:Casualty Loss: The storm damage is…

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Q: For the year ended Dec. 31, 2019, Nando Company paid interest totaling P100,000. The  prepaid…

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Q: 56. The premium on a three- year insurance policy expiring on December 31, 2023, was paid in total…

A: Prepaid insurance period = 3 Years

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A: Adjusting entries are those journal entries which are passed in order to reflect all incomes,…