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nikklg [1K]
3 years ago
14

The 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;
(A) the amount of insurance expired during the year is $20,250;

(B) the amount of unexpired insurance applicable to futre periods is $6,750.
Business
1 answer:
Radda [10]3 years ago
4 0

Answer:

(A)  Debit Insurance expense $20,250

     Credit Prepaid insurance $20,250

     Being entries to recognize insurance amortization expense for the year.

(B)  Debit Insurance expense $20,250

     Credit Prepaid insurance $20,250

     Being entries to recognize insurance amortization expense for the year.

Explanation:

Prepaid insurance account before adjustment = $27,000

(A) the amount of insurance expired during the year is $20,250

To account  for the expired amount,

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Being entries to recognize insurance amortization expense for the year.

(B) the amount of unexpired insurance applicable to future periods is $6,750

Amount expired = $27,000 - $6,750

                           = $20,250

To account  for the expired amount such that the amount of unexpired insurance applicable to future periods is $6,750,

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Being entries to recognize insurance amortization expense for the year.

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Answer:

Option A Risks affecting the business operations and potential outcomes of an organization's activities.

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<u>Answer:</u>

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The client is searching for strategic partner to establish the business to deliver and implement the strategic vision for the next five years. The following are the basic five essentials associated with strategic business plan:

• Mission statement

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• Objectives and strategic goals to be achieved.

• Implementation strategies

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Today, the toy market is overcrowded with many types of toys, each having a unique value proposition and targeting specific age brackets in children. Marketers treat children as a separate demographic segment. Hence, conduct detailed research on this segment to identify classifying the patterns buying behavior.

The especially planned framework would create our business plans for hyper competitive marketplaces. The approach to create the plan is shown below:

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Our agency has been serving companies to succeed over years. We have functioned with multiple companies having wide range of experience in this sector. We have functioned with extensive clients and helped them to achieve a reliable growth rate. We are fully engaged with the client and facilitate them to develop designing of the business plan.

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Answer:

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Explanation:

The journal entry which is to be reported on January 1 for the issuance is as:

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