On November 1, 20X7, XYZ Co. prepaid rent for $60,000 for the
next 12 months (from...
On November 1, 20X7, XYZ Co. prepaid rent for $60,000 for the
next 12 months (from November 1, 20X7 through October 31, 20X8),
recording the entire rental payment as prepaid rent on the November
1, 20X7 payment date. If adjusting entries are made
monthly, what adjusting journal entry is needed on
December 31, 20X7?
please show work and thank you for help
Beta Co. purchased a property insurance policy by paying
$7,500 cash on March 19, 2020, with...
Beta Co. purchased a property insurance policy by paying
$7,500 cash on March 19, 2020, with the insurance coverage
beginning on April 1, 2020. The Company correctly recorded the
transaction on March 19, and no additional related entries were
recorded until December 31, 2020. The effect of the December 31,
2020 adjusting entry will be:
Multiple Choice
Insurance expense will increase $5,625.
Prepaid insurance will decrease $1,875.
Insurance expense will increase $1,875.
Prepaid insurance will increase $5,625.
A two-year damage insurance policy was purchased on October 1,
2019, for €8,000. The firm debited...
A two-year damage insurance policy was purchased on October 1,
2019, for €8,000. The firm debited prepaid insurance for the entire
amount. The necessary adjusting entry at December 31, 2019, should
be:
Select one:
a. Debit: Insurance expenses, €1,000; Credit: Prepaid insurance
expenses, €1,000.
b. Debit: Cash, €1,000; Credit: Prepaid insurance expenses,
€1,000.
c. Debit: Prepaid insurance expenses, €1,000; Credit insurance
expenses, €1,000.
d. Debit: Cash, €8,000; Credit: Ιnsurance expenses, €8,000.
e. Debit: Insurance expenses, €8,000; Credit: Prepaid insurance
expenses,...
Prepare all required summary journal entries complete with
explanations for each of the 20X5, 20X6, and20X7...
Prepare all required summary journal entries complete with
explanations for each of the 20X5, 20X6, and20X7 fiscal years.
(Round the percentage of completion to one significant decimal
place —for example, 16.4%—to determine the amount of revenue to be
recognized in each year.)
Extracts from Bonsai Products Corp.’s(BPC) unadjusted trial
balance for its yearended December31, 20X7,appear below:
Bonsai Products Corp.
Unadjusted trial balance (extracts)
As at December31, 20X7
Account
Debit
Credit
Prepaid expenses
3,500
Note receivable
69,302
Office building
400,000
Accumulated...
On April 30, 2016, Rudolph Inc. purchased a three-year insurance
policy with a cash payment of...
On April 30, 2016, Rudolph Inc. purchased a three-year insurance
policy with a cash payment of $ 19,800. Coverage began
immediately.
What is the amount of Insurance Expense relating to this
insurance policy that will be reported for the year ended December
31, 2016?
$8,800
$2,200
$4,400
$6,600
Three months of rent were prepaid on May 1 for $7,200, but two
months have now expired, leaving only one month prepaid at June 30.
What is the amount of rent expense...
On May 1 2020, Desa Petaling Cleaning Services paid $1,200 for a
one-year fire insurance policy...
On May 1 2020, Desa Petaling Cleaning Services paid $1,200 for a
one-year fire insurance policy beginning May 1. The payment was
recorded as Debit in Prepaid Insurance. On May 31 the account shows
a balance of $1,200. Each month insurance expires $100 (i.e.,
$1,200 ÷ 12 months). Based on this information, answer the
following questions:
i. Make the necessary journal entries for the above transaction
in complying with the concept of revenues and expenses
recognition.
ii. How does accrual...
Wildhorse Co.
Trial Balance
October 31, 2020
Debit
Credit
Cash
$15,000
Supplies
2,600
Prepaid Insurance
600...
Wildhorse Co.
Trial Balance
October 31, 2020
Debit
Credit
Cash
$15,000
Supplies
2,600
Prepaid Insurance
600
Equipment
4,000
Notes Payable
$4,300
Accounts Payable
2,500
Unearned Service Revenue
1,000
Common Stock
10,400
Retained Earnings
–0–
Dividends
700
Service Revenue
10,400
Salaries and Wages Expense
4,900
Rent Expense
800
$28,600
$28,600
Assume the following adjustment data.
1.
Supplies on hand at October 31 total $500.
2.
Expired insurance for the month is $100.
3.
Depreciation for the month is $80.
4.
Services...
The trial balance for Pioneer Advertising is shown below.
Pharoah Advertising Trial Balance October 31, 2017...
The trial balance for Pioneer Advertising is shown below.
Pharoah Advertising Trial Balance October 31, 2017 Debit Credit
Cash $16,000 Supplies 2,800 Prepaid Insurance 500 Equipment 4,900
Notes Payable $4,800 Accounts Payable 3,000 Unearned Service
Revenue 1,100 Owner’s Capital 10,300 Owner’s Drawings 600 Service
Revenue 10,600 Salaries and Wages Expense 4,100 Rent Expense 900
$29,800 $29,800 Assume the following adjustment data. 1. Supplies
on hand at October 31 total $600. 2. Expired insurance for the
month is $300. 3. Depreciation...
Drake Ltd. provides engineering consulting services to various
clients. The company’s year-end is December 31 and...
Drake Ltd. provides engineering consulting services to various
clients. The company’s year-end is December 31 and
adjusting entries are only prepared at year-end, on
December 31.
For each of the following situations, prepare the necessary
adjusting entries on December 31,
2020. If no entry is required, clearly indicate by writing
“No Entry”.
On January 1, 2020, Drake Ltd had a balance in the Prepaid
Insurance account in the amount of $3,600 representing 9 months
insurance (up to September 30, 2020)....