Answer:
C. Insurance expense will increase $2,250
Explanation:
On April 1 2016, the following journal entry will be recorded in respect of the premium paid on a one year insurance policy:
Debit Credit
Prepaid Insurance $3,000
Cash $3,000
The year end given in this question is December 31, 2016 and the insurance premium is for one year and since the insurance premium is paid on April 1, 2016, therefore, only expense in respect of 9 months i.e. from April 1, 2016 to the December 31, 2016 will be recognised in this year. Remaining expense of three months will be recognised in the Year ended December 31,2017.
The following Journal entry will be recorded in respect of insurance expense in accounts on December 31, 2016.
Debit Credit
Insurance expense(3,000*9/12) 2,250
Prepaid Insurance 2,250
So the answer will be C. Insurance expense will increase $2,250
Answer:
D) Debit income summary 187000, credit revenues 187000
Explanation:
When dividend is declared, following journal entry is passed
Retained Earnings Dr.
To Dividend Payable
(Being declared dividend recorded)
When dividends are actually paid, the journal entry is
Dividend Payable A/C Dr.
To Cash A/C
(Being dividend paid recorded)
Income summary account is prepared as a temporary account while income statement represents permanent account.
Income summary shows net income balance i.e Revenue less expenses.
As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.
Talents are abilities that people are either born with or can improve upon.
In this case flying a plane and having good grades are great talents.
Orlando cannot improve his eyesight by just trying harder. Having long legs is a natural attribute, but not a talent.
The Manger Has exercised <u>Concurrent Control</u> on Evan by taking the decision to retrain him.
Explanation:
Concurrent control as the name suggest is the type of control that takes place in the Real-time or at the time the mistake occur.It is a type of a ongoing control and is a continuous process.
This type of control is used to monitor those employees who directly interact with the customers
<u>For Example</u>: A restaurant waiter must be aware about the menu list(Starters,Main Course),A car sales man should be aware about the features of the car and its USP(Unique Selling Proportion)
