**Question:** What is the proper adjusting entry at June 30, the end of the fiscal year, based on a prepaid insurance account balance before adjustment of $18,680, and unexpired amounts per analysis of policies of $6,100?**Options:** - ○ Debit Insurance Expense, $12,580; Credit Prepaid Insurance, $12,580.- ○ Debit Insurance Expense, $6,100; Credit Prepaid Insurance, $6,100.- ○ Debit Insurance Expense, $18,680; Credit Prepaid Insurance, $18,680.- ○ Debit Prepaid Insurance, $12,580; Credit Insurance Expense, $12,580.

In the given question, we have given the following details as of June 30, end of fiscal year.…

Answered: What is the proper adjusting entry at…

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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What is the effect on the financial statements when a company fails to adjust the prepaid insurance account at year-end for insurance coverage that has been used?
How do you treat a prepaid expense that is divided between two accounting periods? eg( insurance of $1551 that includes a premium of $330 paid in December 2019 to cover the company against fire loss for the year 31 December 2019 to 31 December 2020. Final accounts to be written up at 30 June 2020)
Prepare the adjusting journal entries as of Dec 31, 2019 for the following information gathered from the ledger of Flag Company : a.) Unexpired of the Prepaid Insurance account balance of P 42,500 was P 24,500. b.) Accrued Interest on Notes issued P 1,270. c.) Equipment acquired on March 31, 2019 at P 120,000, has a scrap value of P4,000 with estimated life of 10 years. d) Unrecorded unpaid taxes P 18,500. e.) Unpaid salaries P22,500. £.) Interest received and credited to Unearned Interest Income account was P 14,000 of which only P 12,000 was eamed. g.) Office supplies has a balance of P 8,000, Consumed as of Dec 31, 2019 was P 6,800. h.) Unearned Rent Income account has a balance of P 24,000 of which P 20,000 was rent earned. i.) Office Supplies balance was P5,600 of which P1,600 was consumed. Account Title Debit Credit a.) b.) e.) (P) e.) f.) g.) h.) i)
Please help with a and b
Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $14,337 and unexpired insurance of $5,149, for the fiscal year ending on April 30? a.) debit Prepaid Insurance, $9,188; credit Insurance Expense, $9,188 b.) debit Prepaid Insurance, $14,337; credit Insurance Expense, $14,337 c.) debit Insurance Expense, $9,188; credit Prepaid Insurance, $9,188 d.) debit Insurance Expense, $14,337; credit Prepaid Insurance, $14,337
Under Fierce 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. 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?
1. An insurance policy, good for one year, was purchased on April 1, 2020 and has a valueof $25,000.a) Write the journal entry to record the original purchase of the insurance policy onApril 1.b) Write the adjusting journal entry required on April 31, 2020 to reflect the use of onemonth of the insurance service. What, concerning Insurance, would appear on theBalance Sheet? What would appear on the Income Statement?c) Write the adjusting journal entry required on May 31, 2020 to reflect the use of onemore month of the insurance service. What, concerning Insurance, would appear onthe Balance Sheet? What would appear on the Income Statement?
Adjustment for Insurance On December 1, a six-month liability insurance policy was purchased for $900. Analyze the required adjustment as of December 31 using T accounts, and then formally enter this adjustment in the general journal. (Trial balance is abbreviated as TB.) (Balance Sheet)Prepaid Insurance fill in the blank a8cfc50a8015fe0_2 fill in the blank a8cfc50a8015fe0_4 Bal. fill in the blank a8cfc50a8015fe0_5 (Income Statement)Insurance Expense Adj. fill in the blank a8cfc50a8015fe0_6 Page: DATE ACCOUNT TITLE DOC.NO. POST.REF. DEBIT CREDIT 1 20--Dec. 31 fill in the blank 59564e01b03df92_2 fill in the blank 59564e01b03df92_3 1 2 fill in the blank 59564e01b03df92_5 fill in the blank 59564e01b03df92_6 2
Which of the following is the proper adjusting entry, based on a prepaid insurance account balance before adjustment of $16,741 and unexpired insurance of $4,804, for the fiscal year ending on April 30? a.debit Prepaid Insurance, $11,937; credit Insurance Expense, $11,937 b.debit Insurance Expense, $16,741; credit Prepaid Insurance, $16,741 c.debit Prepaid Insurance, $16,741; credit Insurance Expense, $16,741 d.debit Insurance Expense, $11,937; credit Prepaid Insurance, $11,937
The balance in the Prepaid Insurance account before adjustment is $16,500 (assume normal balance). As of 10/31 the amount of insurance that has expired is $6,500
Adjusting entries for prepaid insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $21,910. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: a. The amount of insurance expired during the year is $16,650. If an amount box does not require an entry, leave it blank. b. The amount of unexpired insurance applicable to future periods is $5,260. If an amount box does not require an entry, leave it blank. Σ .

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