Journalizing prepaid insurance
NettetAdjusting Entries for Prepaid Insurance The balance in the prepaid insurance account, before adjustment at the end of the year, is $16,540. Journalize the adjusting entry … Nettet21. sep. 2024 · Journalizing and Posting Transactions and Adjustments. Mark Jacobs opened Roulstone Roofing Service on September 1. Transactions for September follow. Apr. 1 Roulstone contributed $11,500 cash to the business in exchange for common stock. 2 Paid $6,100 cash for the purchase of a used truck. 2 Purchased $6,200 of ladders …
Journalizing prepaid insurance
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Nettet6. okt. 2024 · Prepaid expenses are future expenses that are paid in advance and hence recognized initially as an asset. As the benefits of the expenses are recognized, the related asset account is decreased and expensed. The most common types of … NettetThe balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: Feedback Check My Work Correct a. The amount of insurance expired during the year is $20,250. Insurance Expense 20 ...
Nettet8. feb. 2024 · The following errors took place in journalizing and posting transactions: Insurance of $18,800 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. Dividends of $18,000 were recorded as a debit to Wages Expense and a credit to Cash. Journalize the entries to correct the errors. NettetThe unadjusted balance of the Office Supplies account is $3,000. Office supplies on hand total $1,900. Equipment depreciation was $500. On April 1, when the business prepaid $4,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Journalize the adjusting entry needed on December 31 for each situation.
NettetPrepaid Insurance: 1,300 ... Journalize the closing entries using the four steps in the correct sequence. 6. Prepare a post-dosing trial balance. Check Figure Post-closing trial balance total, 31,765. arrow_forward. Entries into T accounts and trial balance Marjorie Knaus, an architect, organized Knaus Architects on January 1, 20Y4. NettetPrepaid Insurance Journal Entries XYZ company needs to pay its employee liability insurance for the fiscal year ending December 31, 2024, which amounted to $10,000. …
NettetOmit explanations. The following errors took place in journalizing and posting transactions:a. Insurance of $18,000 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance.b. A withdrawal of $10,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a …
Nettet23. feb. 2024 · Because the pre-paid expense has value ($12,000) it is considered to be an asset. 2 Record the journal entry for making the pre-paid expense payment. The first step begins when you pay out the cash for the pre-paid expense. There must be an entry in the general journal to reflect this activity. thunderstorm las vegas todayNettetOn 01 July 2024, ABC needs to record unexpired insurance (or prepaid insurance) which is the current assets. The journal entry is debiting unexpired insurance $ 12,000 … thunderstorm manchester on youtubeNettet17. sep. 2024 · prepaid insurance definition How is prepaid insurance recorded? The income statement account Insurance Expense has been increased by the $900 … thunderstorm manager free trialNettetAll other amounts should be charged to Insurance Expense. The adjusting journal entry for Prepaid Insurance is: Note that the ending balance in the asset Prepaid Insurance is now $600—the correct amount of insurance that has been paid in advance. The income statement account Insurance Expense has been increased by the $900 adjusting entry. thunderstorm manchesterNettetEntries to correct errors The following errors took place in journalizing and posting transactions: A. Insurance of 18,000 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. B. Dividends of 10,000 were recorded as a debit to Wages Expense and a credit to Cash. thunderstorm magicNettetThis journal entry will increase total expenses on the income statement by $1,000 as of January 31, as the result of the one-month expense cost of the insurance. And at the … thunderstorm lesson planNettetColfax Market. Colfax Market is a small corner grocery store that carries a variety of staple items such as meat, milk, eggs, bread, and so on. As a smaller grocery store, Colfax does not offer the variety of products found in a larger supermarket or chain. However, it records journal entries in a similar way. Grocery stores of all sizes must purchase product and … thunderstorm map live