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solong [7]
3 years ago
11

Diane's Designs purchased a one-year liability insurance policy on March 1 of a year for $8,400 and recorded it as a prepaid exp

ense. Which of the following amounts would be recorded as insurance expense during the adjusting process at the end of Diane's first month of operations on March 31?a. $320. b. $3,520.c. $3,840.d. $384.
Business
1 answer:
Liula [17]3 years ago
5 0

Answer:

$700 (not given in the options)

Explanation:

When the policy is purchased with a payment made in advance, the entries recorded are

Debit prepaid insurance  $8,400

Credit Cash account         $8,400

After the first month, the expense incurred is

= 1/12 × $8,400

= $700

Entries then required

Debit Insurance expense   $700

Credit Prepaid Insurance    $700

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How many days will it take for a sum of $1300 to earn $16 interest if it is deposited in a bank paying simple interest at the ra
Sav [38]
The formula is
I=prt
I interest earned 16
P principle 1300
R interest rate 0.04
T time t/365days
16=1300×0.04×(t/365)
Solve for t
T=(16÷(1,300×0.04))×365
T=112.3 days round your answer to get 112 days

Hope it helps!
3 0
3 years ago
Banks are a stabilizing force in our entire financial system. Discuss two of the three primary function of the banking system.
Illusion [34]

Answer: Banks transfer money from savers to borrowers by holding deposits and lending excess reserves. Banks also create money by making loans of excess reserves.

Explanation: Those are two primary functions.

7 0
3 years ago
Brant promised to repair Carolyn's car on Thursday. After picking up the necessary part at a junkyard, he discovered he could no
SashulF [63]
I mean... tell carolyn asap and explain, then try to sell the part on ebay or something
3 0
3 years ago
Green Care Landscaping Company minimizes attention to a price increase by selling lawn care treatments to a subsidiary, Keep It
Len [333]

Answer:

The correct answer is B. indirect blindness.

Explanation:

Blindness is lack of vision. It can also refer to vision loss that cannot be corrected with conventional lenses or with contact lenses.

Partial blindness means that you have very limited vision.

Complete blindness means that you cannot see anything and DO NOT see the light. (Most people who use the term "blindness" mean complete blindness.)

People with less than 20/200 vision with glasses or contact lenses are considered legally blind in most states in the United States.

Vision loss refers to partial or complete loss of vision. Such loss of vision can happen suddenly or over time.

4 0
3 years ago
Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into
Sholpan [36]

Answer:

a. The amount Henrietta can deduct in the current year for investigating the possibility of expanding the hotel chain a city in the Northeast is $67,000.

b. Amount she can deduct in the current year is $2,088.88.

Explanation:

a. Determine the amount Henrietta can deduct in the current year for investigating the possibility of expanding the hotel chain.

Since the primary business of Henrietta is the hotel business, all the expenses she incurred in investigating the possibility of expanding the chain into another city is deductible in the current year despite that she decides not to expand.

Therefore, the amount Henrietta can deduct in the current year for investigating the possibility of expanding the hotel chain a city in the Northeast is $67,000.

b. Determine the amount Henrietta can deduct in the current year for investigating opening a restaurant.

Since the primary business of Henrietta is not a restaurant business, the amount she can deduct in the current year can b determined as follows:

Of the$51,000, an amount of $4,000 [$5,000 − $1,000 (reduction for excess over $50,000)] can be immediately expensed.

The balance of $47,000 ($51,000 − $4,000) is amortized over a period of 180 months at the rate of $261.11 per month ($47,000 ÷ 180) starting from May. Therefore, we have:

Amount she can deduct in the current year = Amount deductible per month * Number of months between May 1 to December 31 = $261.11 * 8 = $2,088.88

4 0
3 years ago
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