zmo Company purchased a 1-year insurance policy on October 1 for $4,560. Journalize the adjusting entry on December 31. If an amount box does not require an entry, leave it blank. 8:8: December 31 Insurance Expense Prepaid Insurance X X

zmo Company purchased a 1-year insurance policy on October 1 for $4,560. Journalize the adjusting entry on December 31. If an amount box does not require an entry, leave it blank. 8:8: December 31 Insurance Expense Prepaid Insurance X X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: a. Wages of $8,000 are earned by workers but not paid as of December 31. b. Depreciation on the…

A: The adjustment entries are prepared at year end to record the accruals and deferrals for the period.…

Q: Garden Depot is a retailer that provided the following budgeted cash flows for next year: Total cash…

A: Cash Budget is a detailed budget of cash income and cash expenditure incorporating both revenue and…

Q: lequirement 1. Joumalize Clay's warranty expense for the period and the company's cash payments to…

A: Warranty expense is an accounting term that refers to the estimated cost of fulfilling a company's…

Q: Assume that Company X loaned $12,000 to an employee on October 1, 2018, by creating a note the…

A: The journal entries are recorded below

Q: payable with year-end adjustments LO P1 vember 1 of the current year by signing a 90-day. 11%.…

A: The person who promised to pay the specified amount by signing a note is treated as notes payable as…

Q: Gizmo Inc. purchased a one-year insurance policy on October 1 for $2,640. The adjusting entry on…

A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Q: Adjusting journal entry December 31 2021: Dr. Insurance Expense 24000 Cr. Pre-Paid…

A: Opening balance of prepaid insurance = 1500 Purchase of prepaid insurance = 30000 Consumption of…

Q: On July 1, 2022, Sunland Co. pays $20,400 to Cheyenre Insurance Co. for a 4-year insurance contract.…

A: Posting the journal entries is the process of recording the journal entries in the respective ledger…

Q: Current Attempt in Progress On July 1, 2025, Splish Co. pays $16,452 to Blossom Insurance Co. for a…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Prepare journal entries to record the following transactions. Create a T-account for Prepaid…

A: Prepaid insurance indicates the amount paid by the company in advance where the premium of it is yet…

Q: Reviewing insurance policies revealed that a single policy was purchased on August 1, for one year's…

A: From August 1 to December 31 = 5 months

Q: The ledger of Sage Hill Rental Agency on March 31, 2024, includes the following selected accounts…

A: Adjusting entries are those which are recorded at the end of the period in order to make adjustments…

Q: The premium on a three-year insurance policy expiring on December 31, year 3, was paid in total on…

A: Any expenses which are paid in advance that is before it becomes due are considered prepaid…

Q: View Policies Current Attempt in Progress On July 1, 2022, Blossom Co. pays $12.000 to Nash's…

A: Typically, a record is kept in the general ledger, but can also be kept in a separate account,…

Q: Received a six-month insurance policy renewal from general insurance company for $1200 paid a meatly…

A: Prepaid expenses are those for which the payment has been made before it occurs. For example,…

Q: 20Y7 Dec. 7. Received from Unitarian Clothing and Bags Co., on account, a $60,000, 60-day, 7% note…

A: Interest = Amount of notes receivables * Rate of interest * number of days / 360 Number of days from…

Q: Required: 1-a. First, complete the table below to calculate the interest amount at December 31, Year…

A: Step by Step Explanations: 1a) Total Through Maturity Amount Accrued at dec 31 Interest…

Q: Same Day Surgery Center received a 120-day, 7% note for $96,000, dated April 9 from a customer on…

A: Maturity value of the note = Face value of bonds + Interest

Q: Discount Auto Insurance deposited $1800 in a saving account paying 3 1/2 % compounded daily on…

A: The bank offers compounded interest on the deposit in the saving account. The compounded interest…

Q: Year 1 December 16 Accepted a(n) $14,000, 60-day, 9% note in granting Danny Todd a time extension on…

A: In the provided transactions, we calculated the interest for various notes receivable issued as time…

Q: Gizmo Inc. purchased a one-year insurance policy on Öctober 1 for $4,920. The adjusting entry on…

A: As revenue recognition concept and matching concept , revenues earned and expenses incurred in…

Q: Gizmo Inc. purchased a one-year insurance policy on October 1 for $5,280. The adjusting entry on…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: None

A: Given:Transaction Date: July 1, 2025Transaction: Waterview Co. pays $16,128 to Wildhorse Insurance…

Q: A two-year insurance policy costing $1,800 was purchased on Sept. 30, 2020. Assume that the purchase…

A: Journal: Recording of a business transactions in a chronological entry.

Q: On July 1, a company paid the $3,840 premlum on a one-year Insurance policy with benefits beginning…

A: The accrual concept recognizes revenue and expenses when they are earned or incurred, regardless of…

Q: On October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…

A: Answer - PART 1 - No Date General journal Debit Credit 1 Nov-11 Cash $…

Q: Balance Sheet Prepaid Insurance Accrual Basis December 31, Year 1 December 31, Year 2 December 31,…

A: Accrrual asset balance formula YearsMonths LeftAsset accrual Balance12349-9 = 00

Q: Pavillion Company experienced the following events and transactions during July: July 1 Received…

A: In case of multiple questions, we are allowed to solve only the first question. If you want other…

Q: The balance in the prepaid insurance account, before adjustment at the end of the year, is $8,950.…

A: Journal entries refers to the entries which records the business transactions into the books of…

Q: A homeowner’s policy was cancelled by the Illinois insurance guaranty fund due to insolvency of the…

A: With reference to Illinois insurance guaranty fund, Maximum unearned premium claim = $500,000…

Q: On July 1, 2025, Novak Co. pays $10,200 to Splish Insurance Co. for a 2-year insurance policy. Both…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: Calculating Accrued Interest Likert Company received a 90 day, six percent note receivable for…

A: Calculation of the accrued interest on December 31:Note: Number of days interest accrued from…

Q: Required information [The following information applies to the questions displayed below] Following…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Adjustment for Prepaid Expense The prepaid insurance account had a beginning balance of $6,370 and…

A: Journal entry: It is also called as book of original entry. All financial transactions occurred in a…

Q: Year 1 December 16 Accepted a(n) $14,300, 60-day, 8% note in granting Danny Todd a time extension on…

A: Notes Receivables are assets that are listed in the company's current assets based on their…

Q: Smokey Company purchases a 1-year insurance policy on July 1 for $12,396. The adjusting entry on…

A: An adjusting entry is one that is created to properly allocate revenue and expenses to each…

Q: Gizmo Inc. purchased a one-year insurance policy on October 1 for $3,000. The adjusting entry on…

A: Prepaid Expense is an asset that arises when the payment for an expense is made but it is not yet…

Question

zmo Company purchased a 1-year insurance policy on October 1 for $4,560. Journalize the adjusting entry on December 31. If an amount box does not require an entry, leave it blank.
December 31 Insurance Expense
Prepaid Insurance
X
X
X
8
X

Expert Solution

Step 1: Introducing Journal Entries

JOURNAL ENTRIES

Journal Entry is the first stage of Accounting Process. Journal Entry is the Process of Recording all Financial & Non Financial Transactions in a Proper Format.

Journal entries help to keep records of all transactions.

Rule of Journal Entry :—

Debit the Receiver, Credit the Giver.
Debit what Comes in, Credit what Goes Out.
Debit all Expenses & Losses, Credit all Income & Gains.

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Complete journal entries 1-4 please and thank you!
Proper adjusting entry based on prepaid insurance account balance before adjustment $18650 and unexpired amounts per analysis of policies of $5990
Adjusting entries for prepaid insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $22,500. 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 $18,000. If an amount box does not require an entry, leave it blank. 88 b. The amount of unexpired insurance applicable to future periods is $4,500. If an amount box does not require an entry, leave it blank.
Domestic
Smokey Company purchases a 1-year insurance policy on July 1 for $10,824. The adjusting entry on December 31 is
Complete interest amounts and general journal 1-2 pleaee and thank you
kk. Subject :- Accounting
A one-year insurance policy was purchased on June 1 for $1,920. Journalize the adjusting entry required on December 31. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select - - Select -
View Policies Current Attempt in Progress On July 1, 2022, Blossom Co. pays $12.000 to Nash's Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. For Blossom Co. journalize and post the entry on July 1 and the annual adjusting entry on December 31. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem) Debit Credit Date Account Titles and Explanation 100
Do a journal entry based on this transections, round interest amounts to the nearest dollar,
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 .