Ask Experts Questions for FREE Help!
  Advanced
Register  |  Log in  
   Ask    
 Answer  
  Help  

Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps

At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.

Home > Business & Careers > Accounting   »   adjusting entries

Answer this Question Ask about Accounting
 
Thread Tools Display Modes
Question
 
 
#1  
Old Sep 10, 2006, 07:38 PM
notebook
New Member
notebook is offline 		 
Join Date: Sep 2006
Posts: 2
notebook See this member's comment history on his/her Profile page.
adjusting entries
the prepaid insurance account had a balance of $5600 at the beginning of the year. The account was debited for $1800 for premiums on policies purchased during the year. Journalize the adjusting entry required at the end of the year for each situation.
(a) the amount of unexpired insurance applicable to future periods is $3680

(b) the amount of insurance expired during the year is $3720

Reply With Quote
 
     

Answers
 
 
Old Sep 10, 2006, 07:50 PM   #2  
New Member
notebook is offline
 
Join Date: Sep 2006
Posts: 2
notebook See this member's comment history on his/her Profile page.
insurance 120
prepaid insurance 120


Insurance exp 2040
prepaid ins 2040
  Reply With Quote
 
     
 
 
Old Sep 10, 2006, 09:23 PM   #3  
Finance & Accounting Expert
CaptainForest is offline
 
CaptainForest's Avatar
 
Join Date: Nov 2005
Location: Canada
Posts: 3,672
CaptainForest See this member's comment history on his/her Profile page.CaptainForest See this member's comment history on his/her Profile page.CaptainForest See this member's comment history on his/her Profile page.CaptainForest See this member's comment history on his/her Profile page.
Quote:
Originally Posted by notebook
(a) the amount of unexpired insurance applicable to future periods is $3680
Prepaid Insurance, Jan 1, $5,600
Purchases, $1,800
Total = $7,400

Only $3,720 left.

Therefore, 7,400-3,720 = 3,680 used up

Dr. Insurance Expense 3,680
Cr. Prepaid Insurance 3,680


Quote:
Originally Posted by notebook
(b) the amount of insurance expired during the year is $3720
Dr. Insurance Expense 3,720
Cr. Prepaid Insurance 3,720
  Reply With Quote
 
     
Answer this Question Ask about Accounting

« Previous Thread | Next Thread »

Thread Tools
Display Modes
Linear Mode Linear Mode

 
Similar Sponsors

Similar Threads
Question Asker Forum Answers Last Post
adjusting enteries acc201lost Accounting 7 Sep 26, 2006 01:12 PM
Adjusting Entries kandykane Finance & Accounting 2 Sep 7, 2006 06:41 PM
A-1 Photography adjusting entries jessica1019 Finance & Accounting 1 Aug 28, 2006 07:27 PM
Adjusting Entries bosey Finance & Accounting 1 Jun 6, 2006 10:49 PM
Journalize and Adjusting Faded_Dreams Accounting 1 Feb 7, 2006 04:15 AM




Copyright ©2003 - 2007, Ask Me Help Desk.
All times are GMT -8. The time now is 05:48 AM.