On May 1, 2019, a two-year insurance policy was purchased for P24,000 with coverage effective immediately. What is the amount of insurance expense that appears on the income statement for the year ended December 31, 2019?

On May 1, 2019, a two-year insurance policy was purchased for P24,000 with coverage effective immediately. What is the amount of insurance expense that appears on the income statement for the year ended December 31, 2019?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 49P

See similar textbooks

Related questions

Q: On October 1, 2021, FDN Company paid an insurance premium covering the period from October 1, 2021…

A: Adjusting entries are prepared at the end of the accounting year to ensure the accrual base…

Q: Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of…

A: Prepaid insurance is the amount of insurance that is paid by an entity in advance. In other words,…

Q: 44. On January 18, 2019, Big City Co, paid $36,000 for a two-year insurance premium that covers…

A: a)

Q: For each of the following independent situations, give the journal entries to adjust and correct the…

A: These are the Journal entries that are recorded in a Company's General Ledger that occurs at the end…

Q: During December 2019 Johnson Realty paid an insurance premiums, $6,000. Journalize the transaction…

A: Introduction Journal entry may be defined as a process of recording business transactions according…

Q: Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $3,840 and…

A: Given: Price of the policy = $ 3,840

Q: Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense.…

A: Answer Prepaid insurance expenses in beginning of year is considered expenses on Accrual basis in…

Q: On October 1, 2019 your company paid its insurance agent P2,400 for the annual insurance premium…

A: Comments; Multiple questions asked Prepaid expense - These are the expenses that paid in advance…

Q: Amez Company's annual accounting perlod ends on December 31, 2019. The following Information…

A: 1. Transaction General Journal Debit ($) Credit ($) a. Office supplies expense…

Q: On June 1, 2019, Herbal Co. received $20,040 for the rent of land for 12 months. Journalize the…

A: Rent earned upto December 31, 2019 = Total amount received x 7 months / 12 months = $20,040 x 7…

Q: On April 1 2019, a company paid insurance premium of P340,000 covering a period of two years…

A: Journal entry means the recording and summarizing the all business transaction during a period of…

Q: Do a journal entry to account for insurance expense incurred in the month of December. Date the…

A: Journal Entry is a record of a transaction in accounting system

Q: Under M. Sabio Company’s accounting system, all insurance premiums paid are debited to prepaid…

A: Total amount of insurance premiums paid by M. Sabio during 2019= Prepaid Insurance at December 31,…

Q: Paid 1/1/20 Coverage period 1/1/20—12/31/20 $3,500 Fire, storm, and other casualty insurance:…

A: Accounting refers to the process of documenting all the financial transactions of a company in its…

Q: how is the 12/31 amount $3,350

A: In the given information the insurance contract is for 3 years for which Tamarisk, Inc. pays $20,100…

Q: 3. On August 31st 2018, Barakat company paid BD 4,800 for 2 years insurance. Calculate the…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Prepaid…

Q: c. On September 1, 2019, North Dakota Manufacturing paid a premium of $13,560 in cash for a one-year…

A: Adjusting entries are usually done the year-end in order to ensure that all the expenses and the…

Q: A company makes the payment of a one-year insurance premium of $4,584 on March 1, 2019. c.…

A: Prepaid insurance is considered a prepaid expense. It is a payment made to the insurer in advance…

Q: At December 31, 2022, before any year-end adjustments, Blossom Company Prepaid Insurance account had…

A: Adjusting entries are prepared at the end of the accounting period to ensure the accrual base…

Q: Under ABC Company’s accounting system, all insurance premiums paid are charged to insurance expense.…

A: Prepaid insurance on December 31, 2020 = Total premium paid x No. of months / 12 months = P500,000 X…

Q: At December 31, 2022, before any year-end adjustments, Blue Spruce Corp.'s Insurance Expense account…

A: Adjusting Entry – These entries make the cash transaction the accrual one. This also ensures that…

Q: For each of the following independent situations, give the journal entries to adjust and correct the…

A: These are the Journal entries that are recorded in a Company's General Ledger that occurs at the end…

Q: A two-year insurance premium of $8,400 was paid on January 1, 2018, for coverage beginning on that…

Q: on january 1, prepaid insurance was debited for 1,896 related to the cost of a two-year premium,…

A: The following journal entry should be recorded when prepaid expense is purchased on January 1:

Q: . debit Prepaid Expense and credit Insurance Expense, $2,550

A: It is pertinent any expense that is to be recorded in the current period has to consumed by the…

Q: The insurance expense account has a balance of P108,000 before adjustment. This amount represents…

A: In this case, the journal entry to record the prepaid insurance includes a debit to the prepaid…

Q: On July 1, a company paid the $1,200 premium on a one-year insurance policy with benefits beginning…

A: Solution: Insurance paid in advance is prepaid insurance which needs to be adjusted to recognize…

Q: The premium on a three-year insurance policy expiring on December 31, 2022 was paid in total on…

A: >Adjusting entries are recorded, as part of completion of accounting cycle. >These are…

Q: At December 31, 2022, before any year-end adjustments, Kingbird, Inc. Prepaid Insurance account had…

A: At the end of every financial year, adjustment entries are made to ensure that the expenses and…

Q: On March 1, 2020, Jimenez purchased a one-year insurance policy for $2,400. On that date, Jimenez…

A: Monthly Insurance expense = Total amount paid / 12 months = $2,400 / 12 months = $200

Q: On January 1, 2019, AAA insurance co. entered into reinsurance contract with CCC Co. for a premium…

A: Reinsurance is an arrangement between an insurance company (insurer) and other insurance company…

Q: A. The company bought a 3-year insurance policy from Philamlife dated January 1, 2021 amounting to P…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: How do you treat a prepaid expense that is divided between two accounting periods? eg( insurance of…

A: JOURNAL ENTRY In The Books of .......................................... Period…

Q: Under Edelbert company’s accounting system, all insurance premiums paid are debited to prepaid…

A: Prepaid insurance are in the nature of Current Assets which are adjusted against insurance expenses…

Q: AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: .CVN Services purchased a 1-year insurance policy on Marr h 1, 2020 for 240,000. The amount of…

A: Prepaid insurance is the amount of insurance that is not yet due but has already been paid.

Q: The premium on a 3-year insurance policy expiring on December 31, 2022 was paid in total on January…

A: Prepaid insurance:- The term prepaid insurance is defined as the insurance payment, which is already…

Q: Under Fierce Company’s accounting system, all insurance premiums paid are charged to insurance…

A: Journal: It is the first step of recording financial transactions. It is used to prepare the…

Q: On June 1, 2019, Herbal Co. received $30,490 for the rent of land for 12 months. Journalize the…

A: When cash is received, cash is debited as cash is a real account and since it comes into the…

Q: On October 1, 2021, ABC Company paid an insurance premium covering the period from October 1, 2021…

A: Insurance expense per month = Total amount paid / Total period of service Prepaid Insurance Expense…

Q: A Company purchased an 18-month insurance policy on May 31, 2019 for $3,600. The December 31, 2019…

A: Prepaid insurance is an asset account and is reported on the balance sheet under the category of…

Q: On July 1, 2022, Sheridan Company pays $12,500 to Oriole Company for a 2-year insurance contract.…

A: Date Accounts title and explanation Debit ($) Credit ($) 1-Jul-22 Prepaid insurance $12,500…

Q: Requlred Information [The following information applies to the questions displayed below.] A company…

A: Prepaid expense is an asset account. On the date of payment of insurance premium, entire $4,248…

Q: At December 31, 2022, before any year-end adjustments, Dallis Company's Prepaid Insurance account…

A: The prepaid insurance is the amount of insurance expense paid in advance by the business but…

Q: Maple Tree Inc. purchased a 12-month insurance policy on March 1, 2019 for $900. At December 31,…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: At December 31, 2022, before any year-end adjustments, Dallis Company's Prepaid Insurance account…

A: The prepaid insurance is the amount of insurance paid in advance but is not due yet.

Q: The premium on a 3-year insurance policy expiring on December 31, 2022 was paid in total on January…

A: Prepaid insurance can be defined as the insurance amount is paid in advance before it incurs.…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it was issued on January 1, 2019, How much is the earned portion for the month ended January 31, 2019? How much is the earned portion for the month ended December 31, 2019? How much is the unearned portion for the month ended January 31, 2019? How much is the unearned portion for the month ended December 31, 2019? How much is the provision for unearned premium on December 31, 2019?
On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance premiums and recorded the funds in Unearned Revenue. Umbrella records insurance revenue on a monthly basis. How much will be in the Unearned Revenue account on November 30, 2021?
The balance of the Estimated Warranty Liability account was $12,000 on January 1, 2019, and $13,600 on December 31, 2022. Based on an analysis of warranty claims during the past several years, this year's warranty provision was established at 3% of sales, and sales during the year were $800,000. Required: a). What amount of warranty expense will appear on the income statement for the year ended December 31, 2022? b). What were the actual costs of servicing products under warranty during the year?
On October 1, 2019, Donna Equipment signed a one-year, 8% interest-bearing note payable for $50,000. Assuming that Donna Equipment maintains its books on a calendar year basis (December 31 as fiscal year end), how much interest expense should be reported in the 2020 income statement? Select one: a. $2,000. b. $4,000. c. $1,000. d. $3,000.
On December 31, 2019, Reuter Company has a balance of $98.75 in the FUTA taxes payable account. This representsthe employer’s liability for the fourth quarter taxes. Journalize the entry Reuter Company should make in January2020 to record the last transfer (payment) of FUTA taxes for 2019.
The premium on a four-year insurance policy expiring on december 31, 2034 was paid in total on January 1, 2021. If the original payment was recorded as a prepaid asset, the balance in prepaid asset on December 31, 2022 would be a. lower than the balance on december 31, 2021b. lower than the balance on december 31, 2023c. the same as the balance on december 31, 2023d. the same as the original payment DISCUSS
Prepaid Insurance amounting to P35,000 was recorded by FDNACCT Co. on April 1, 2021 for a year of fire insurance premium. How much should remain as prepaid insurance on December 31, 2021?
1. Determine the estimated warranty liability on December 31, 2022.2. Analyze the estimated warranty liability account to ascertain if adjustment is necessary. The sales and warranty repairs are made evenly during the year.
For the year ended Dec. 31, 2019, Nando Company paid interest totaling P100,000. The prepaid interest expense is P23,500 and P18,000, respectively, on December 31, 2018 and 2019. The interest payable is P45,000 and P53,500, respectively, on December 31, 2018 and 2019. What amount of interest expense should be reported on December 31, 2019?
18. Melanie Corp. borrowed $101,000 cash on September 1, 2019, and signed a one-year 6%, interest-bearing note payable. The interest and principal are both due on August 31, 2020. Assume that the appropriate adjusting entry was made on December 31, 2019 and that no adjusting entries have been made during 2020. Which of the following would be the required journal entry to pay the note on August 31, 2020? Multiple Choice Interest payable2,020 Notes payable101,000 Cash 103,020 Notes payable101,000 Interest expense6,060 Cash 107,060 Interest expense6,060 Cash 6,060 Interest expense4,040 Interest payable2,020 Notes payable101,000 Cash 107,060
Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021
On July 1, 2019, John Deere signed a $100,000, one year, 6% note payable. The principal and interest will be paid on June 30, 2020. How much interest expense should be reported on the income statement for the year ended December 31, 2019? $6,000 $3,000 $0 $1,500