Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 3, Problem 43EB
TJ’s Tavern paid $10,800 on February 1, 2010, for a three-year insurance policy. In the company’s information system, this was recorded as prepaid insurance. Use the
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in december 2022, the fixed monthly insurance debit order was not processed due to an oversight by insurance company. this was rectified by Ss managing director, sam who informed the insurance company. On 2 January 2023 the insurance DEBIT order was processed twice, resulting in total deduction of R55000 from Ss bank account. the trail balance needs to be adjusted to account for this. Prepare the adjustment journal entries
On July 1, 2025, Novak Co. pays $10,200 to Splish Insurance Co. for a 2-year insurance policy. Both companies have fiscal years ending
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Date
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2550
Credit
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2550
On July 1, 2025, Novak Co. pays $10,200 to Splish Insurance Co. for a 2-year insurance policy. Both companies have fiscal years ending
December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Splish Insurance Co. Splish uses the accounts
Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No entry for the account titles and enter O for the amounts. Record journal entries in the order
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Date
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Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1YTCh. 3 - Prob. 2YTCh. 3 - Prob. 3YTCh. 3 - Prob. 4YTCh. 3 - Prob. 5YTCh. 3 - Prob. 6YTCh. 3 - Prob. 7YTCh. 3 - How does accrual basis accounting differ from cash...Ch. 3 - Prob. 2QCh. 3 - Prob. 3Q
Ch. 3 - Prob. 4QCh. 3 - What are accrued expenses?Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Name two common deferred expenses.Ch. 3 - What does it mean to recognize revenue?Ch. 3 - How does matching relate to accruals and...Ch. 3 - What is depreciation?Ch. 3 - Why is depreciation necessary?Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - When prepaid insurance has been used, the...Ch. 3 - Prob. 10MCQCh. 3 - Prob. 1SEACh. 3 - Prob. 2SEACh. 3 - Account for interest expense. (LO 1, 2). UMC...Ch. 3 - Prob. 4SEACh. 3 - Account for insurance expense. (LO 1, 3). Catrina...Ch. 3 - Prob. 6SEACh. 3 - Account for unearned revenue. (LO 1, 3). Able...Ch. 3 - Prob. 8SEACh. 3 - Prob. 9SEACh. 3 - Prob. 10SEACh. 3 - Calculate profit margin on sales ratio. (LO 5)....Ch. 3 - Prob. 12SEBCh. 3 - Prob. 13SEBCh. 3 - Prob. 14SEBCh. 3 - Prob. 15SEBCh. 3 - Prob. 16SEBCh. 3 - Prob. 17SEBCh. 3 - Prob. 18SEBCh. 3 - Prob. 19SEBCh. 3 - Calculate net income. (LO I, 4). Suppose a company...Ch. 3 - Prob. 21SEBCh. 3 - Prob. 22SEBCh. 3 - Prob. 23EACh. 3 - Prob. 24EACh. 3 - Prob. 25EACh. 3 - Prob. 26EACh. 3 - Prob. 27EACh. 3 - Prob. 28EACh. 3 - Account for insurance expense. (LO 1, 3). Yodel ...Ch. 3 - Prob. 30EACh. 3 - Prob. 31EACh. 3 - Prob. 32EACh. 3 - Prob. 33EACh. 3 - Prob. 34EACh. 3 - Southeast Pest Control, Inc., was started when its...Ch. 3 - Prob. 36EACh. 3 - Prob. 37EACh. 3 - Prob. 38EACh. 3 - Prob. 39EACh. 3 - Prob. 40EBCh. 3 - Prob. 41EBCh. 3 - Prob. 42EBCh. 3 - TJs Tavern paid 10,800 on February 1, 2010, for a...Ch. 3 - Prob. 44EBCh. 3 - Prob. 45EBCh. 3 - Account for insurance expense. (LO 1, 3). All...Ch. 3 - Prob. 47EBCh. 3 - Prob. 48EBCh. 3 - Prob. 49EBCh. 3 - Prob. 50EBCh. 3 - Prob. 51EBCh. 3 - Prob. 52EBCh. 3 - From the following list of accounts (1) identify...Ch. 3 - Prob. 54EBCh. 3 - Prob. 55EBCh. 3 - Prob. 56EBCh. 3 - Prob. 57PACh. 3 - Prob. 58PACh. 3 - Prob. 59PACh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 61PACh. 3 - Record adjustments. (LO 1, 2, 3). The Gladiator...Ch. 3 - Prob. 63PACh. 3 - Transactions for Pops Company for 2011 were as...Ch. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 66PACh. 3 - Prob. 67PACh. 3 - Record adjustments and prepare income statement....Ch. 3 - Prob. 69PBCh. 3 - Prob. 70PBCh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 72PBCh. 3 - Record adjustments. (LO 1, 2, 3). Summit Climbing...Ch. 3 - Prob. 74PBCh. 3 - Prob. 75PBCh. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 77PBCh. 3 - Prob. 78PBCh. 3 - Identify and explain accruals and deferrals. (LO...Ch. 3 - Prob. 2FSACh. 3 - Prob. 3FSACh. 3 - Prob. 1CTPCh. 3 - Prob. 1IECh. 3 - Prob. 3IECh. 3 - Prob. 4IE
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- 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 P437,500arrow_forwardFlint Hills, Inc. has prepared a year-end 2021 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred. The Supplies account shows a balance of $880, but a count of supplies reveals only $380 on hand. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $590 in Insurance expense. A review of insurance policies reveals that $210 of insurance is unexpired. Flint Hills employees work Monday through Friday, and salaries of $4,100 per week are paid each Friday. Flint Hills' year-end falls on Tuesday. On December 31, 2021, Flint Hills received a utility bill for December electricity usage of $360 that will be paid in early January of 2022. Required:Prepare adjusting journal entries, as needed, for the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)arrow_forwardNeed Help with Financial Accountingarrow_forward
- Flint Hills, Incorporated has prepared a year-end 2024 trial balance. Certain accounts in the trial balance do not reflect all activities that have occurred. The Supplies account shows a balance of $680, but a count of supplies reveals only $280 on hand. Flint Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $490 in Insurance expense. A review of insurance policies reveals that $160 of insurance is unexpired. Flint Hills employees work Monday through Friday, and salaries of $3,100 per week are paid each Friday. Flint Hills' year-end falls on Tuesday. On December 31, 2024, Flint Hills received a bill for $260 for utilities incurred during December. The bill will be paid in early January of 2025. Required: Prepare adjusting journal entries, as needed, for the above items. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.arrow_forwardMasterfalls Corporation purchased a one-year insurance policy in January 2017 for $36,000. The insurance policy is in effect from March 2017 through February 2018. If the company neglects to make the proper year-end adjustment for the expired insurance: Group of answer choices net income and assets will be understated by $30,000. net income and assets will be overstated by $30,000. net income and assets will be understated by $6,000. net income and assets will be overstated by $6,000.arrow_forwardMasterfalls Corporation purchased a one-year insurance policy in January 2016 for $36,000. The insurance policy is in effect from March 2016 through February 2017, if the company does not make any adjusting journal entries through December 2016 for the expired insurance: net income and assets will be overstated by $6,000. net income and assets will be overstated by $30,000. net income and assets will be understated by $30,000. net income and assets will be understated by $6,000arrow_forward
- AJ Corporation purchased a one year insurance policy costing $1200 on 11/1/2013. No adjusting entry was made on 11/30/2013. The company's fiscal year ends on December 31. Prepare the necessary adjusting entry on 12/31/2013 assuming: a. the original entry was made to prepaid insurance: b. the orginal entry was made to insurance expensearrow_forwardCarlile Company paid $3,600 on November 1, 2024 for a 12-month insurance policy. The company's bookkeeper recorded the payment with a debit to Insurance Expense and a credit to Cash. Which of the following is the correct December 31, 2024 adjusting journal entry? Question 1Select one: Debit Prepaid Insurance and credit Insurance Expense, $600 Debit Prepaid Insurance and credit Insurance Expense, $3,000. Debit Insurance Expense and credit Prepaid Insurance, $3,600. Debit Insurance Expense and credit Prepaid Insurance, $3,000.arrow_forwardAn analysis of Thrit Corp.'s unadjusted prepald expense account at December 31, 2010, revealed the following: An opening balance of P1,500 for Thrift s comprehensive insurance policy. Thrift had paid an annual premium of P3,000 on July 1. 2009. A P3,200 annual insurance premlum payment made July 1. 2010. A P2.000 advance rental payment for a warehouse Thrift leased for one year beginning January 1, 2011. In its December 31, 2010 balance sheet what amount should Thrift report as prepaid expenses?arrow_forward
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License