Chapter 7, Problem 4UJ

Important disclosures regarding likely losses that could not be estimated are found where? General Ledger Accounts Income Statement Notes To The Financial Statements

On December 1, your company paid its insurance agent $2,400 for the annual insurance premium covering the twelve-month period beginning on December 1. The $2,400 payment was recorded on December 1 with a debit to the current asset Prepaid Insuranceand a credit to the current asset Cash. Your company prepares monthly financial statements at the end of each calendar month. The following questions pertain to the adjusting entry that should be written by the company. What date should be used to record the December adjusting entry?

A bank lent $100,000 to a customer on December 1 that required the customer topay an annual percentage rate (APR) of 12% on the amount of the loan. The loan is duein six months and no payment of interest or principal is to be made until the note is dueon May 31. The bank prepares monthly financial statements at the end of each calendarmonth. The following questions pertain to the adjusting entry that the bank will be making for its accounting records. Question: What date should be used to record the December adjusting entry?

Typically an adjusting entry will include which of the following? One Balance Sheet Account And One Income Statement Account Two Balance Sheet Accounts Two Income Statement Accounts

Which type of adjusting entry is often reversed on the first day of the next accounting period? Accrual Deferral Depreciation

. In the case of a bank's accrued interest revenues, which occurs first? Earning The Interest Revenues Receiving The Interest From The Borrower

The ending balance in the account Prepaid Insurance is expected to report which of the following? The Accrued Amount Of Insurance Expense The Original Amount Of The Insurance Premiums Paid The Expired Portion Of The Insurance Premiums Paid The Unexpired Portion Of The Insurance Premiums Paid

The adjusting entry that reduces the balance in Deferred Revenues or Unearned Revenues will also include which of the following? A Debit To Cash A Credit To Fees Earned A Debit To Fees Earned A Credit To Fees Receivable

The adjusting entry that reduces the balance in Prepaid Insurance will also include which of the following? A Credit To Cash A Credit To Insurance Expense A Debit To Insurance Expense A Debit To Insurance Payable