Calculate cash paid for operating expense.

Question

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Answer 1

Question

Chapter 11, Problem 20E

1.

To determine

Calculate cash paid for operating expense.

1.

Expert Solution

Explanation of Solution

Operating expenses: The expenses which are incurred in day-to-day business activities but not directly allied with the production of goods and service are called operating expenses. They are classified under three big categories: “administrative expenses, selling expenses, and general expenses”.

Calculate cash paid for operating expenses.

Situation	Operating expenses	Prepaid insurance Increase (Decrease)	Salaries payable Increase (Decrease)	Cash paid for operating expenses
1	$100	$15	$10	(1) $105
2	$100	($15)	$10	(2) $75
3	$100	$15	($10)	(3) $125
4	$100	($15)	($10)	(4) $95

Table (1)

Working note:

Calculate amount of cash for operating expenses in each situation:

Situation 1:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance−Increase in salaries payable)=$100+$15−$10=$105 (1)

Situation 2:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance−Increase in salaries payable)=$100−$15−$10=$75 (2)

Situation 3:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance+Decrease in salaries payable)=$100+$15+$10=$125 (3)

Situation 4:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance+Decrease in salaries payable)=$100−$15+$10=$105 (4)

2.

To determine

Prepare the summary journal entry for each situation.

2.

Expert Solution

Explanation of Solution

Prepare the summary journal entry for each situation.

Situation 1:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable		10
	Cash		105
	(To record the summary journal entry)

Table (1)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $105.

Situation 2:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance		15
	Salaries payable		10
	Cash		75
	(To record the summary journal entry)

Table (2)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is decreased. Hence, credit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $75.

Situation 3:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable	10
	Cash		125
	(To record the summary journal entry)

Table (3)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $125.

Situation 4:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Salaries payable	10
	Prepaid insurance		15
	Cash		95
	(To record the summary journal entry)

Table (4)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10
Prepaid insurance is an asset account and it is decreased. Therefore, credit prepaid insurance with $15.
Cash is an asset account and it is decreased. Therefore, credit cash with $95.

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Answer 2

Question

Chapter 11, Problem 20E

1.

To determine

Calculate cash paid for operating expense.

1.

Expert Solution

Explanation of Solution

Operating expenses: The expenses which are incurred in day-to-day business activities but not directly allied with the production of goods and service are called operating expenses. They are classified under three big categories: “administrative expenses, selling expenses, and general expenses”.

Calculate cash paid for operating expenses.

Situation	Operating expenses	Prepaid insurance Increase (Decrease)	Salaries payable Increase (Decrease)	Cash paid for operating expenses
1	$100	$15	$10	(1) $105
2	$100	($15)	$10	(2) $75
3	$100	$15	($10)	(3) $125
4	$100	($15)	($10)	(4) $95

Table (1)

Working note:

Calculate amount of cash for operating expenses in each situation:

Situation 1:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance−Increase in salaries payable)=$100+$15−$10=$105 (1)

Situation 2:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance−Increase in salaries payable)=$100−$15−$10=$75 (2)

Situation 3:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance+Decrease in salaries payable)=$100+$15+$10=$125 (3)

Situation 4:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance+Decrease in salaries payable)=$100−$15+$10=$105 (4)

2.

To determine

Prepare the summary journal entry for each situation.

2.

Expert Solution

Explanation of Solution

Prepare the summary journal entry for each situation.

Situation 1:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable		10
	Cash		105
	(To record the summary journal entry)

Table (1)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $105.

Situation 2:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance		15
	Salaries payable		10
	Cash		75
	(To record the summary journal entry)

Table (2)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is decreased. Hence, credit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $75.

Situation 3:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable	10
	Cash		125
	(To record the summary journal entry)

Table (3)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $125.

Situation 4:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Salaries payable	10
	Prepaid insurance		15
	Cash		95
	(To record the summary journal entry)

Table (4)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10
Prepaid insurance is an asset account and it is decreased. Therefore, credit prepaid insurance with $15.
Cash is an asset account and it is decreased. Therefore, credit cash with $95.

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Answer 3

Question

Chapter 11, Problem 20E

1.

To determine

Calculate cash paid for operating expense.

1.

Expert Solution

Explanation of Solution

Operating expenses: The expenses which are incurred in day-to-day business activities but not directly allied with the production of goods and service are called operating expenses. They are classified under three big categories: “administrative expenses, selling expenses, and general expenses”.

Calculate cash paid for operating expenses.

Situation	Operating expenses	Prepaid insurance Increase (Decrease)	Salaries payable Increase (Decrease)	Cash paid for operating expenses
1	$100	$15	$10	(1) $105
2	$100	($15)	$10	(2) $75
3	$100	$15	($10)	(3) $125
4	$100	($15)	($10)	(4) $95

Table (1)

Working note:

Calculate amount of cash for operating expenses in each situation:

Situation 1:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance−Increase in salaries payable)=$100+$15−$10=$105 (1)

Situation 2:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance−Increase in salaries payable)=$100−$15−$10=$75 (2)

Situation 3:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance+Decrease in salaries payable)=$100+$15+$10=$125 (3)

Situation 4:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance+Decrease in salaries payable)=$100−$15+$10=$105 (4)

2.

To determine

Prepare the summary journal entry for each situation.

2.

Expert Solution

Explanation of Solution

Prepare the summary journal entry for each situation.

Situation 1:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable		10
	Cash		105
	(To record the summary journal entry)

Table (1)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $105.

Situation 2:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance		15
	Salaries payable		10
	Cash		75
	(To record the summary journal entry)

Table (2)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is decreased. Hence, credit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $75.

Situation 3:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable	10
	Cash		125
	(To record the summary journal entry)

Table (3)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $125.

Situation 4:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Salaries payable	10
	Prepaid insurance		15
	Cash		95
	(To record the summary journal entry)

Table (4)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10
Prepaid insurance is an asset account and it is decreased. Therefore, credit prepaid insurance with $15.
Cash is an asset account and it is decreased. Therefore, credit cash with $95.

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Answer 4

Question

Chapter 11, Problem 20E

1.

To determine

Calculate cash paid for operating expense.

1.

Expert Solution

Explanation of Solution

Operating expenses: The expenses which are incurred in day-to-day business activities but not directly allied with the production of goods and service are called operating expenses. They are classified under three big categories: “administrative expenses, selling expenses, and general expenses”.

Calculate cash paid for operating expenses.

Situation	Operating expenses	Prepaid insurance Increase (Decrease)	Salaries payable Increase (Decrease)	Cash paid for operating expenses
1	$100	$15	$10	(1) $105
2	$100	($15)	$10	(2) $75
3	$100	$15	($10)	(3) $125
4	$100	($15)	($10)	(4) $95

Table (1)

Working note:

Calculate amount of cash for operating expenses in each situation:

Situation 1:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance−Increase in salaries payable)=$100+$15−$10=$105 (1)

Situation 2:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance−Increase in salaries payable)=$100−$15−$10=$75 (2)

Situation 3:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance+Decrease in salaries payable)=$100+$15+$10=$125 (3)

Situation 4:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance+Decrease in salaries payable)=$100−$15+$10=$105 (4)

2.

To determine

Prepare the summary journal entry for each situation.

2.

Expert Solution

Explanation of Solution

Prepare the summary journal entry for each situation.

Situation 1:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable		10
	Cash		105
	(To record the summary journal entry)

Table (1)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $105.

Situation 2:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance		15
	Salaries payable		10
	Cash		75
	(To record the summary journal entry)

Table (2)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is decreased. Hence, credit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $75.

Situation 3:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable	10
	Cash		125
	(To record the summary journal entry)

Table (3)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $125.

Situation 4:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Salaries payable	10
	Prepaid insurance		15
	Cash		95
	(To record the summary journal entry)

Table (4)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10
Prepaid insurance is an asset account and it is decreased. Therefore, credit prepaid insurance with $15.
Cash is an asset account and it is decreased. Therefore, credit cash with $95.

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Answer 5

Chapter 11, Problem 20E

1.

To determine

Calculate cash paid for operating expense.

1.

Expert Solution

Explanation of Solution

Operating expenses: The expenses which are incurred in day-to-day business activities but not directly allied with the production of goods and service are called operating expenses. They are classified under three big categories: “administrative expenses, selling expenses, and general expenses”.

Calculate cash paid for operating expenses.

Situation	Operating expenses	Prepaid insurance Increase (Decrease)	Salaries payable Increase (Decrease)	Cash paid for operating expenses
1	$100	$15	$10	(1) $105
2	$100	($15)	$10	(2) $75
3	$100	$15	($10)	(3) $125
4	$100	($15)	($10)	(4) $95

Table (1)

Working note:

Calculate amount of cash for operating expenses in each situation:

Situation 1:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance−Increase in salaries payable)=$100+$15−$10=$105 (1)

Situation 2:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance−Increase in salaries payable)=$100−$15−$10=$75 (2)

Situation 3:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance+Decrease in salaries payable)=$100+$15+$10=$125 (3)

Situation 4:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance+Decrease in salaries payable)=$100−$15+$10=$105 (4)

2.

To determine

Prepare the summary journal entry for each situation.

2.

Expert Solution

Explanation of Solution

Prepare the summary journal entry for each situation.

Situation 1:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable		10
	Cash		105
	(To record the summary journal entry)

Table (1)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $105.

Situation 2:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance		15
	Salaries payable		10
	Cash		75
	(To record the summary journal entry)

Table (2)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is decreased. Hence, credit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $75.

Situation 3:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable	10
	Cash		125
	(To record the summary journal entry)

Table (3)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $125.

Situation 4:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Salaries payable	10
	Prepaid insurance		15
	Cash		95
	(To record the summary journal entry)

Table (4)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10
Prepaid insurance is an asset account and it is decreased. Therefore, credit prepaid insurance with $15.
Cash is an asset account and it is decreased. Therefore, credit cash with $95.

Answer 6

Chapter 11, Problem 20E

1.

To determine

Calculate cash paid for operating expense.

1.

Expert Solution

Explanation of Solution

Operating expenses: The expenses which are incurred in day-to-day business activities but not directly allied with the production of goods and service are called operating expenses. They are classified under three big categories: “administrative expenses, selling expenses, and general expenses”.

Calculate cash paid for operating expenses.

Situation	Operating expenses	Prepaid insurance Increase (Decrease)	Salaries payable Increase (Decrease)	Cash paid for operating expenses
1	$100	$15	$10	(1) $105
2	$100	($15)	$10	(2) $75
3	$100	$15	($10)	(3) $125
4	$100	($15)	($10)	(4) $95

Table (1)

Working note:

Calculate amount of cash for operating expenses in each situation:

Situation 1:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance−Increase in salaries payable)=$100+$15−$10=$105 (1)

Situation 2:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance−Increase in salaries payable)=$100−$15−$10=$75 (2)

Situation 3:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance+Decrease in salaries payable)=$100+$15+$10=$125 (3)

Situation 4:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance+Decrease in salaries payable)=$100−$15+$10=$105 (4)

Answer 7

Chapter 11, Problem 20E

1.

To determine

Calculate cash paid for operating expense.

Answer 8

1.

Expert Solution

Explanation of Solution

Operating expenses: The expenses which are incurred in day-to-day business activities but not directly allied with the production of goods and service are called operating expenses. They are classified under three big categories: “administrative expenses, selling expenses, and general expenses”.

Calculate cash paid for operating expenses.

Situation	Operating expenses	Prepaid insurance Increase (Decrease)	Salaries payable Increase (Decrease)	Cash paid for operating expenses
1	$100	$15	$10	(1) $105
2	$100	($15)	$10	(2) $75
3	$100	$15	($10)	(3) $125
4	$100	($15)	($10)	(4) $95

Table (1)

Working note:

Calculate amount of cash for operating expenses in each situation:

Situation 1:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance−Increase in salaries payable)=$100+$15−$10=$105 (1)

Situation 2:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance−Increase in salaries payable)=$100−$15−$10=$75 (2)

Situation 3:

Cash paid for operating expenses=(Operating expenses+Increase in prepaid insurance+Decrease in salaries payable)=$100+$15+$10=$125 (3)

Situation 4:

Cash paid for operating expenses=(Operating expenses−Decrease in prepaid insurance+Decrease in salaries payable)=$100−$15+$10=$105 (4)

Answer 9

1.

Expert Solution

Answer 10

1.

Expert Solution

Answer 11

Expert Solution

Answer 12

2.

To determine

Prepare the summary journal entry for each situation.

2.

Expert Solution

Explanation of Solution

Prepare the summary journal entry for each situation.

Situation 1:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable		10
	Cash		105
	(To record the summary journal entry)

Table (1)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $105.

Situation 2:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance		15
	Salaries payable		10
	Cash		75
	(To record the summary journal entry)

Table (2)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is decreased. Hence, credit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $75.

Situation 3:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable	10
	Cash		125
	(To record the summary journal entry)

Table (3)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $125.

Situation 4:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Salaries payable	10
	Prepaid insurance		15
	Cash		95
	(To record the summary journal entry)

Table (4)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10
Prepaid insurance is an asset account and it is decreased. Therefore, credit prepaid insurance with $15.
Cash is an asset account and it is decreased. Therefore, credit cash with $95.

Answer 13

2.

To determine

Prepare the summary journal entry for each situation.

Answer 14

2.

Expert Solution

Explanation of Solution

Prepare the summary journal entry for each situation.

Situation 1:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable		10
	Cash		105
	(To record the summary journal entry)

Table (1)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $105.

Situation 2:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance		15
	Salaries payable		10
	Cash		75
	(To record the summary journal entry)

Table (2)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is decreased. Hence, credit prepaid insurance with $15.
Salaries payable is a liability account and it is increased. Hence, credit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $75.

Situation 3:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Prepaid insurance	15
	Salaries payable	10
	Cash		125
	(To record the summary journal entry)

Table (3)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Prepaid insurance is an asset account and it is increased. Hence, debit prepaid insurance with $15.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10.
Cash is an asset account and it is decreased. Therefore, credit cash with $125.

Situation 4:

Date	Accounts title and explanation	Debit ($)	Credit ($)
	Operating expenses	100
	Salaries payable	10
	Prepaid insurance		15
	Cash		95
	(To record the summary journal entry)

Table (4)

Operating expenses is an expense account and it decreases the stockholders’ equity. Hence, debit Operating expenses with $100.
Salaries payable is a liability account and it is decreased. Hence, debit salaries payable with $10
Prepaid insurance is an asset account and it is decreased. Therefore, credit prepaid insurance with $15.
Cash is an asset account and it is decreased. Therefore, credit cash with $95.