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uysha [10]
3 years ago
6

Gibson Company paid $3,600 on June 1, 2010 for a two-year insurance policy and recorded the entire amount as Insurance Expense.

The December 31, 2010 adjusting entry isa. debit Insurance Expense and credit Prepaid Insurance, $1,050.b. debit Insurance Expense and credit Prepaid Insurance, $2,550.c. debit Prepaid Insurance and credit Insurance Expense, $1,050d. debit Prepaid Insurance and credit Insurance Expense, $2,550.
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
5 0

Answer:

d. debit Prepaid Insurance and credit Insurance Expense, $2,550.

Explanation:

Provided insurance expense paid on 1 June $3,600 for a period of 2 years.

this is recorded as an expense, now on December 31 this will be transferred to Prepaid insurance also.

Amount to be transferred = 3,600 \times \frac{17}{24} = 2,550

Because the insurance is of 2 years and for the current year it is only for 7 months 1 June to 31 December so remaining (12 months \times 2) - 7 = 17 months is for next upcoming period.

For this entry will be,

<u>Prepaid Insurance Dr. $2,550</u>

<u>          To Insurance Expense       $2,550</u>

Amount of prepaid insurance transferred to expense of insurance.

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Unrealized holding gains or losses which are recognized in income are from debt securities classified as
Serga [27]

Answer:

Trading.

Explanation:

In Business management, when a gain or loss is realized, it simply means that the owner of stock or other securities has sold it. Thus, these unrealized gains or losses are generally referred to as paper profits or losses.

Basically, when the value of a stock being bought by an investor reduces (falls) while he or she is yet to sell it, it is known as an unrealized loss.

However, when the value of a stock being bought by an investor rises (increases) while he or she is yet to sell it, it is known as an unrealized gains.

Hence, unrealized holding gains or losses which are recognized in income are from debt securities classified as trading.

3 0
3 years ago
Schager Company purchased a computer system at a cost of $40,000. The estimated useful life is 10 years, and the estimated resid
Elodia [21]

Answer:

The correct answer is B: $5,600

Explanation:

Giving the following information:

Schager Company purchased a computer system for $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000.

Double-declining balance method= Netbook value* (2/useful life in years)

Year 1:

Double-declining balance method= (40000-5000)*(2/10)= $7000

Year 2:

Double-declining balance method= (35000-7000)*0.20= $5,600

7 0
3 years ago
Which would be an example of sustainable development? a. Current use of fossil fuels in the U.S. b. Heap-leach extraction of gol
Setler [38]

Answer:

The correct answer is letter "D": Development of brownfields in urban areas.

Explanation:

In urban planning, sustainable development refers to continuous activities that can be performed during extended periods of time. They are the result of repeated patterns of individuals who, sometimes unconsciously, provoke more and more individuals to repeat their actions.

Under such a scenario, <em>the development of brownfields in urban areas is the result of building more department complexes in the cities because of the increasing need for renting and selling houses as a result of the increasing population growth.</em>

5 0
4 years ago
Read 2 more answers
According to the demand-pull theory, inflation is caused by:
Aliun [14]

Answer:

Understanding Demand-Pull Inflation

Demand-pull inflation is a tenet of Keynesian economics that describes the effects of an imbalance in aggregate supply and demand. When the aggregate demand in an economy strongly outweighs the aggregate supply, prices go up. This is the most common cause of inflation.

Explanation:

hope it helps you

6 0
3 years ago
Packer Corporation’s year 8 income statement reported $130,000 in income before provisions for income taxes. To compute the prov
romanna [79]

Answer:

$127,000

Explanation:

Calculation for the amount to be reported as taxable income

Using formula

Taxable income=[Year 8 Income Statement + Rent received in advance -Income from exempt municipal bonds -(Depreciation deducted for income tax purposes-Depreciation deducted for financial reporting)]

Let plug in the formula

Taxable income=[$130,000+$ 22,000 -$ 17,000 -( $ 18,000 -$ 10,000 )]

Taxable income=$130,000+$ 22,000 -$ 17,000 -$8,000

Taxable income=$127,000

Therefore the amount that Packer should report as taxable income will be $127,000

5 0
3 years ago
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