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gayaneshka [121]
3 years ago
13

On January 1, a company purchased a five-year insurance policy for $3,700 with coverage starting immediately. If the purchase wa

s recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the first year is:
a. debit Insurance Expense, $740; credit Prepaid Insurance $740
b. debit Prepaid Insurance, $3,700; credit Cash, $3,700
c. debit Prepaid Insurance, $2,960; credit Insurance Expense, $2,960
d. debit Insurance Expense, $740; credit Prepaid Insurance $2,960
e. debit Prepaid Insurance, $740; credit Insurance Expense, $740
Business
1 answer:
Pavlova-9 [17]3 years ago
6 0

Answer:

a. debit Insurance Expense, $740; credit Prepaid Insurance $740

Explanation:

Insurance payment for 5 years = $3,700

On January 1, $3,700 has been recorded as prepaid expense by debiting prepaid insurance and crediting cash.

At the end of first year an insurance expense for one year is accrued and should be recorded by transferring balance of $740 from prepaid insurance account to insurance expense account  

Insurance payment per year = $3,700 / 5 = $740 per year

The adjusting entry will be

Debit      Insurance Expense    $740

Credit     Prepaid Insurance     $740

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Byron agrees to sell to Charity, for $1,500, a remote parcel of land.They believe the land to be worthless, but beneath it is a
DedPeter [7]

Answer:

D) enforce the contract.

Explanation:

Neither party knew about the gold mine before the deal was made, Byron and Charity even thought it was worthless. If Charity by accident, chance or luck discovered the gold mine, then she is entitled to it. Even f Byron wants to cancel the deal, he can't because Charity acted on good faith and the discovery of the gold mine was not something planned or intended.

For example, if I like an antique at a yard sale and I purchase it at $5, and then by chance someone that knows about antiques tells me that it is really expensive, a made a lot of money and the previous owner doesn't have the right to cancel the sale.  

6 0
3 years ago
Select all that apply select the policies that are intended to encourage economic growth.
Travka [436]

If a government is trying to encourage economic growth, they would do all of these things except raise taxes. Raising taxes has the opposite effect and will slow growth because it takes more money out of the economy that could be used for growth and expansion.

5 0
3 years ago
Read 2 more answers
Once the outputs are identified in a work flow analysis, the next step involves: identifying the materials needed to generate th
hichkok12 [17]

Answer:

taking an inventory of the special equipment, facilities, and systems needed for production.

Explanation:

7 0
3 years ago
The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as
leva [86]

Answer:

A. economies of scale.

Explanation:

The economies of scale is the scale where the company has the advantage of the cost that reaped by the organization in the case when there is an efficient production. It could be accomplished when the level of production or the volume of the production rises by lowering the cost

Therefore as per the given situation, the option A is correct as it fits to the current situation

Hence, the correct option is A.

4 0
3 years ago
Explain the kind of economic goods that are hot dogs and hot dog buns are with respect to each other, and then explain what is l
NNADVOKAT [17]

Answer:

Compliments

The demand for hot dogs would increase

Explanation:

Compliment goods are goods that are demanded together. Hot dog and hot dog bins are consumed together so they are demanded together. If the demand for hot dog increases, the demand for hot dog buns also increases.

If the price of hot dog buns falls, the demand for hot dog increases.

I hope my answer helps you

6 0
3 years ago
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