Give true solution for this accounting question Vanguard Solutions Ltd. purchased a 12-month insurance policy onFebruary 1, 2023, for $3,600. At February 28, 2023, the adjustingjournal entry to record the expiration of this asset will include a:A) Debit to prepaid insurance and a credit to insurance expense for$300.B) Debit to insurance expense and a credit to prepaid insurance for$300.C) Debit to prepaid insurance and a credit to cash for $3,600.D) Debit to insurance expense and a credit to cash for $300.

Step 1: Define Adjusting Journal Entry for Prepaid ExpensesAn adjusting journal entry for prepaid…

Answered: Vanguard Solutions Ltd. purchased a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14EB: Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on...

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Anderson Air is a customer of Handler Cleaning Operations. For Anderson Airs latest purchase on January 1, 2018, Handler Cleaning Operations issues a note with a principal amount of $1,255,000, 6% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Handler Cleaning Operations for the following transactions. A. Entry for note issuance B. Subsequent interest entry on December 31, 2018 C. Honored note entry at maturity on December 31, 2019
Maple Tree Inc. purchased a 12-month insurance policy on March 1, 2019 for $900. At December 31, 2019, the adjusting journal entry to record expiration of this asset will include a: o Debit to Insurance Expense and a credit to Prepaid Insurance for $900 o Debit to Prepaid Insurance and a credit to Insurance Expense for $100 o Debit to Insurance Expense and a credit to Prepaid Insurance for $75 o None of the above
An examination of Insurance Policies of Standard Company is presented below: Policy Date of Purchase Life of Policy Cost September 1, 2019 4years P25,920 May 1, 2020 2years 18,960 July 31, 2020 1year 9,720 Prepaid Insurance was debited for the cost of each policy at the time of its purchase. Expired insurance was correctly recorded at the end of 2019. What is the balance of Prepaid Insurance at the end of 2020?
Under M. Sabio Company’s accounting system, all insurance premiums paid are debited to prepaid insurance. For interim financial reports, M Sabio makes monthly estimated charges to insurance expenses with credits to prepaid insurance. Additional information for the year ended December 31, 2019 are as follows: Prepaid Insurance at December 31, 2018 P120,500 Charges to insurance expense during 2019( including a year- End adjustment of P10,500) 437,500 Prepaid Insurance at December 31, 2019 110,000 What was the total amount of insurance premiums paid by M. Sabio during 2019? P448,000 P427,000 P327,500 P437,500
Skysong, Inc. purchased a 12-month insurance policy on March 1, 2022 for $5280. At March 31, 2022, the adjusting journal entry to record expiration of this asset will include: Pick one of the answers and tell me why 1. a debit to Insurance Expense and a credit to Prepaid Insurance for $440. 2. a debit to Insurance Expense and a credit to Cash for $440
On September 1, 2020, Eureka, Inc. paid $24,000 for a 12-month insurance policy covering its major assets and business operations. The insurance policy runs from September 1, 2020 to August 31, 2021. The bookkeeper recorded this purchase (the original entry) in the insurance expense account. The year-end (December 31) adjusting entry would be: debit insurance expense $16,000; credit prepaid insurance $16,000debit prepaid insurance $8,000; credit insurance expense $8,000debit prepaid insurance $16,000; credit insurance expense $16,000debit insurance expense $8,000; credit prepaid insurance $8,000
c. On September 1, 2019, North Dakota Manufacturing paid a premium of $13,560 in cash for a one-year insurance policy. On December 31, 2019, an examination of the insurance records showed that coverage for a period of four months had expired. Record the adjustment for insurance expired. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31, 2019
Renfro Company purchased a 12-month insurance policy on March 1, 2022 for $1,800. At March 31, 2022, the adjusting journal entry to record expiration of this asset will include a a debit to Prepaid Insurance and a credit to Insurance Expense for $200. b debit to Insurance Expense and a credit to Cash for $150. c debit to Insurance Expense and a credit to Prepaid Insurance for $150. d debit to Prepaid Insurance and a credit to Cash for $1,800.
A company makes the payment of a one-year insurance premium of $4,584 on March 1, 2019. c. Calculate the amount of prepaid insurance that should be reported on the December 31, 2019, balance sheet with respect to this policy.
On October 1, 2022, Bramble Company issued an $828000, 9%, 9-month interest-bearing note. If the Bramble Company is preparing financial statements at December 31, 2022, the adjusting entry for accrued interest will include a: O credit to Notes Payable of $18630. O credit to Interest Payable of $37260. O debit to Interest Expense of $27945. O debit to Interest Expense of $18630
Help me answer this, thanks.
At December 31, 2022, before any year-end adjustments, Blossom Company Prepaid Insurance account had a balance of $6840. It was determined that $3070 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be: O $6840. O $3770. O $3070. O $3300.

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