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
gizmo_the_mogwai [7]
3 years ago
11

On January 1, DogMart Company purchased a two-year liability insurance policy for $22,800 cash. The purchase was recorded to Pre

paid Insurance. Prepare the January 31 adjusting entry.
Business
2 answers:
GarryVolchara [31]3 years ago
7 0

Answer:

Adjusting Entry

Date             Accounts/ Description          Dr.        Cr.

January 31   Insurance Expenses            $950

                    Prepaid Insurance                            $950

Explanation:

On January 1 insurance purchased will be considered as the prepaid insurance and it is for 2 years ( 24 months ). On January 31 one month's insurance expense has been accrued and it should be recorded and balance for this accrual should be transferred from prepaid insurance to insurance expense account.

Insurance paid =  $22,800

Per month Insurance = $22,800 / 24 = $950 per month

Lubov Fominskaja [6]3 years ago
5 0

Answer:

insurance expense   950 debit

      prepaid insurance 950 credit

Explanation:

When the firm purcahses the insurance it acquired the right in their favor thus, it gets an assets. As times passes the policy expires therefore, the asset of the firm llose value Hence, at the end of the month we have to adjust for the expired portion of the insurance

22,800 is the value of the entire two years:

22,800 / 24 months (two years) = 950 cost per month

we decrease the prepaid insurance and recognize their expense as a result of past of time.

You might be interested in
The following are characteristics of the __________ certification: Only law enforcement personnel and government employees worki
Pachacha [2.7K]

Answer:

Certified Forensic Computer Examiner (CFCE)

Explanation:

Certified Forensic Computer Examiner (CFCE) was the first ever certification that came into existence to certify the competencies of an individual in the field of computer and software/digital forensics, specifically in relations of windows.

The exam takers are tested on the basis of their knowledge, skills, and ability to carry out basic incident investigations which include E-Discovery, forensic analysis and reporting, evidence acquisition, browser forensics and tracing user and application activities on Windows systems.

7 0
3 years ago
Descriptive account does not capture all that is involved. (T/F)true or false​
alina1380 [7]

Answer:

truee..................

8 0
3 years ago
The Model Company is to begin operations in April. It has budgeted April sales of $46,000, May sales of $50,000, June sales of $
rewona [7]

Answer:

The correct answer is B

Explanation:

The amount of cash to be collected or received  in the month of July is computed as:

Amount of cash received in the July month = (July Sales × 10%) + (June Sales × 90% × 75%) + (May Sales × 90% × 17%) + (April Sales × 90% × 6%)

where

July Sales is $58,000

June Sales is $56,000

May Sales is $50,000

April Sales is $46,000

Putting the values:

= ($58,000 × 10%) + ($56,000 × 90% × 75%) + ($50,000 × 90% × 17%) + ($46,000 × 90% × 6%)

= $5,800 + $37,800 + $7,650 + $2,484

= $53,734

8 0
3 years ago
Which statement is consistent with the law of demand?
Marianna [84]

Answer: B. A reduction in market price will lead to an increase in quantity demanded.

The law of demand states that normal goods have a higher demand at lower prices, because the demand curve is downward sloping which means that the lower the price the more of it people will be willing to buy, so a reduction in market price will mean that now more people are willing to buy that good. For eg a car normally sells $80,000 and 1000 cars are sold in a month, because of technological advances the company now sells the car for $60,000 because of this decrease in price more people will be willing to buy the car and the the monthly sales will be more than a 1,000 cars because at the price of $60,000 more people will be willing to buy this car.

Explanation:

5 0
3 years ago
If the Federal Reserve announces that its target for the federal funds rate is rising from 4 percent to 4.25 percent, how do you
olganol [36]

Answer:

B) As long as the Fed's announcement is credible, workers and firms will reduce their consumption and investment spending, which will reduce aggregate demand and reduce inflation.

Explanation:

If the FED announces that it will increase the federal funds rate, it will increase the interest that banks charge other banks for lending them money in order to  comply with the reserve ratio. This increase would make banks hand out less loans and be more careful in order to reduce their need for overnight funds.

If banks reduce their loans, their capacity for creating money will also be reduced, lowering the consumption level and investment spending of both workers (households) and private firms.

6 0
3 years ago
Other questions:
  • A repetitive manufacturing firm is planning on level material use. The following information has been collected. Currently, the
    6·1 answer
  • The following data are for the two products produced by Tadros Company.Product A Product BDirect materials $15 per unit $24 per
    8·1 answer
  • Paolo is skilled at making both earrings and bracelets. Paolo has no preference between making earrings or bracelets since he ea
    13·1 answer
  • A company uses CMS (Content Management System) to store and manage public content. The VP of Advertising wants to run marketing
    13·1 answer
  • Barney decides to quit his job as a corporate accountant, which pays $10,000 a month, and goes into business for himself as a ce
    10·1 answer
  • At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: o
    6·1 answer
  • Which of the following is still primarily a bricks-and-mortar industry?
    5·1 answer
  • What is the difference between factor payments and profits
    13·1 answer
  • AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, th
    6·1 answer
  • Lewis is responsible for all installation activities at a large utility company. He would be considered a _______ manager.
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!