1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleonysh [2.5K]
3 years ago
5

Aurora Corporation operated without insurance coverage for the first month of 2019. Then, on February 1, 2019, the company paid

the $4,800 premium on a two-year insurance policy with benefits beginning on that date. The company uses the accrual basis. How much insurance expense will be reported on the company's income statement for the year ended December 31, 2019? a) $200 b) $2,200 c) $4.600 d) $4,800
Business
1 answer:
Genrish500 [490]3 years ago
3 0

Answer:

Correct answer is letter B, $2,200

Explanation:

Using accrual basis method, revenue and expenses will be recognized when incurred.

The $4,800 is a 24 months policy, therefore we must compute the insurance expense applicable for the year covering from February 1 to December 31 (11 months)

An adjusting entry to recognize the expire portion of the insurance must be done at the year end in the amount of $2,200.

($4,800 / 24 months = $200 x 11 months = $2,200)

You might be interested in
The following incorrect income statement was prepared by the accountant of the Axel Corporation:
Airida [17]

Answer:

Sales revenue         $  710,000

Cost of goods sold $ 385,000

Gross Profit             $ 325,000

Selling expense              71,000

Administrative expense 91,000

Operating Income        163,000

Non-Operating Income

Interest revenue                   44,000

Gain on sale of investments 91,000

Interest expense                  (28,000)

Restructuring costs              (67,000)

Income before taxes           203,000

Income tax expense              (50,750)

Net Income                            152,250

Shares outstanding 100,000

Earnings per share $1.52

Explanation:

We need to determinate gross profit.

then, the operating income therefore the interest and restructuring cost are not considered.  Same goes for the gain on investment as aren't part of the business normal activities.

3 0
3 years ago
Cullumber Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales
swat32

Answer:

a) Net Income = 68200

b) Tingler net income= 8645

   Shocker net income=29655

   Total net income=38300

c) No, because net income would decrease from 68200 to 38300.

Explanation:

Find the attachment for explanation/solution.

3 0
3 years ago
How does context influence your communication? Consider the language and culture people grew up with, and the role these play in
Lelu [443]

Answer and explanation:

<em>Language </em>and <em>culture </em>affect directly in people's communication. Somebody who grew up in the jungle surrounded by its people is likely to have an open way of communicating with others since that individual has grown up within a society that is in great part his or her family. On the other hand, someone who is raised in a metropolis is likely to be more careful while communicating with others since that person is more exposed to different people with different cultures that react differently to situations.

5 0
3 years ago
When effective communication affected your success at work
artcher [175]

Answer:

Being able to communicate at school and in the workplace may mean the difference between success and failure. With your peers, communication helps you to engage and find common ground, allowing you to build friendships that not only last a lifetime, but may lead to future employment opportunities.

Explanation:

8 0
3 years ago
Form a correct sentence by unscrambling the following sentence en el espanol hay vocales cinco
-Dominant- [34]

Answer:

En el español hay cinco vocales.

Explanation:

6 0
3 years ago
Other questions:
  • In the following descriptions, which company is likeliest to have strong power in its distribution channel? A. A pizzeria in a c
    8·2 answers
  • Moses is working on a kibbutz in Israel where all the members have the same standard of living and they equally divide the profi
    10·1 answer
  • Cecil Jameson, Attorney-at-Law, is a proprietorship owned and operated by Cecil Jameson. On July 1, 2007, Cecil Jameson, Attorne
    10·1 answer
  • Checkers uses the periodic inventory system. For the current month, the beginning inventory consisted of 7,200 units that cost $
    5·1 answer
  • he following is from the 2021 annual report of Kaufman Chemicals, Inc.: Statements of Comprehensive Income Years Ended December
    6·1 answer
  • Seemore Lens Company (SLC) sells contact lenses FOB destination. For the year ended December 31, the company reported Inventory
    15·1 answer
  • The following is a list of accounts commonly seen in financial statements. Identify whether each account appears on the balance
    6·1 answer
  • In March, Stinson Company completes Jobs 10 and 11. Job 10 cost $23,300 and Job 11 $31,500. On March 31, Job 10 is sold to the c
    7·1 answer
  • Stitch Fix is an online personal styling service that was founded in 2011. This company combines computer algorithms with human
    11·1 answer
  • a building rents for $32 per square foot with an index of 1.6. the index increases to 1.9. what is the adjusted rental rate?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!