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Scilla [17]
4 years ago
13

On July 31, 2018, a company purchased a two-year insurance policy for $27,000, paying cash and debiting Prepaid Insurance for th

e entire two-year premium amount. The adjusting entry on December 31, 2018 includes a:_________
Business
1 answer:
Nutka1998 [239]4 years ago
7 0

Answer:

Journal Entry will be as follow

DR.   Insurance Expense      $5,625

CR.   Prepaid Insurance        $5,625

Explanation:

On 31 July 2018 the advance Insurance has been paid and the prepaid insurance account has been debited and cash is credited. As a result the prepaid insurance is recorded as an asset. On December 31, 2018 five month has been passed, so according to accrual concept the expense should be recorded for this period. The adjusting entry requires an expense account of Insurance to debited and prepaid insurance account should be credited to transfer the accrued insurance expense from asset account to an expense account.

Total Insurance paid = $27,000 for two years

Insurance per month = $27,000 / 12 = $1,125

Insurance expense for five months of 2018 = $1,125 x 5 = $5,625

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The standard quantity of materials allowed is computed as a.Unit Quantity Standard × Normal Output. b.Unit Quantity Standard × A
SpyIntel [72]

Option B

The standard quantity of materials allowed is computed as  Unit Quantity Standard × Actual Output.

<h3><u>Explanation:</u></h3>

A standard is a benchmark or "pattern" for ranking production. In managerial accounting, standards associated with the price and quantity of inputs utilized in producing goods or rendering services. The "standard quantity provided for the actual output" indicates the number of the input that should have been practiced to generate the actual output of the session.

It is measured by squaring the standard amount of input per unit of output by the actual output. To scale production, actual quantities accepted are related to standard quantities enabled.

8 0
3 years ago
Bronks Co. had pension plan assets and PBO of $160,000 on 1/1/19. Service cost for the year was $40,000. It contributed $30,000
Vesnalui [34]

Answer:

Pension expense:

= Service cost + Interest on PBO - actual return

= 40,000 + (10% * 160,000) - 15,000

= $41,000

PBO at end of year:

= Beginning PBO+ Service cost + Interest on PBO - Benefits paid

= 160,000 + 40,000 + (10% * 160,000) - 20,000

= $196,000

Pension Assets at end of year:

= Beginning PBO + Return + Contribution - Benefits

= 160,000 + 15,000 + 30,000 - 20,000

= $185,000

7 0
3 years ago
An activity measure focused on the number of items produced in the production process is called a(n) ______ measure.
Tasya [4]

An activity measure focused on the number of items produced in the production process is called a(n) <u>Output</u> measure. Output; activity focused on measuring number of items produced in a production process in a firm is known as output measurement.

More about output measure:

When we talk about output measurement in production another contradictory term which comes to our mind is outcome measurement.

Output measurement:

Measures of an organization's output what it generates during production. For a health department, an example of this may be the quantity of homes that have had their lead paint examined. Or the number of people trained as part of a training programme

Outcome measurement:

Measures related to what the organization aims to achieve. These are sometimes divided into short-term, medium-term and long-term measures.

Know more about Output measurement here:

brainly.com/question/17345708

#SPJ4

4 0
2 years ago
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 offering a 4% discoun
KATRIN_1 [288]

Answer:

caring value of bond liability is $48000

interest expense = $3547

annual coupon = 3500

amount of bond discount amortization is $47

Explanation:

given data

face value = $50,000

bonds issue =  96

discount = 4%

time = 20 year

interest = 7%

effective rate of interest = 7.389%

to find out

compound annual coupon

solution

we have given face value and discount 4 %

so issue price will be

issue price = 96% of face value

issue value = 96% × 50000 = $48000

and

interest expense is here by effective interest rate is

interest expense = 7.389% of $48000

interest expense = $3547

and

annual coupon is here

annual coupon is 7% of face value

annual coupon = 7% × 50000

annual coupon = 3500

and

amount of bond discount amortization is 3547 - 3500 = $47

5 0
3 years ago
The bullet points beneath a one-line mission statement often serve as A. value statements to show how the mission will be achiev
umka21 [38]
Um, Hello there. The answer to your question is probably going to be.
<span>


The bullet points beneath a one-line mission statement often serve as
A. value statements to show how the mission will be achieved.
B. a timeline for achieving the company's goals.
C. lesser goals to consider for the future.
D. a reminder of the one-line statement.</span>
3 0
4 years ago
Read 2 more answers
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