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Veronika [31]
3 years ago
13

At December 31, 2013, before any year-end adjustments, Macarty Company's Prepaid Insurance account had a balance of $2,700. It w

as determined that $1,500 of the Prepaid Insurance had expired. The adjusting entry for Insurance Expense for the year would be ___________.
Business
1 answer:
gtnhenbr [62]3 years ago
4 0

The adjusting entry would recognise insurance expense of $1,500.

Explanation:

The policy of an insurance company, tax insurance, insurance for business failure, etc. typically lasts a year, with payments charged in full (insurance premiums). Insurance policy is never the same as the financial year of the product. There are also expected to be several consolidated financial statements and some partial financial statements for compensation premiums.

Example of insurance premium payment:

On 31 December, the insurer files an correction report in order to document the expired (extended) cost of insurance and to the the pre-paid number. This is done with an premium fee of $1,000 and a prepayment policy bonus of $1,000.

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Economists usually assume that production is subject to increasing opportunity costs because: a. higher production usually resul
umka2103 [35]

Answer:

d. not all resources are equally suited to producing every good.

Explanation:

The rule of increasing cost of opportunity is the principle that, when you keep increasing the development of one item, the cost of opportunity of creating the next unit rises. It occurs just as you redistribute resources to create one product which was ideally suited to create the initial product.

8 0
3 years ago
Surreal Corp. has borrowed to invest in a project. The loan calls for a payment of $17,500 every month for three years. The lend
Marianna [84]

Answer:

The rate at which to discount the payments to find sum borrowed is 12.68%

Explanation:

The discount rate to be used in computing the sum borrowed can e derived from the effective annual rate formula below:

Effective annual rate = (1 + Quoted interest rate/m)^m - 1

quoted interest rate is 8.40

m is the number of months in a year when compounding is done which is 12

effective annual rate=(1+8.40%/12)^12-1

effective annual rate=(1+0.01)^12-1

effective annual rate=(1.01)^12-1

effective annual rate=1.12682503 -1

effective annual rate=0.12682503=12.68%

7 0
3 years ago
Kilroy Corporation provides services to a customer for $1,000. The customer complained that there was a slight defect in the ser
nordsb [41]

Answer:

debit to Sales allowance of $50

Explanation:

When some defect in a product is revealed or notified by the buyer, the seller usually grants the customer an allowance which is termed as sales allowance.

It is usually allowed when the customer agrees to keep the product instead of returning the defective product which would constitute sales returns.

Following journal entry is recorded for recording sales allowance

Sales Allowance A/C                                     Dr. $ 50

    To Accounts Receivable                                          $50

(Being allowance for defects recorded)

Sales allowance is deducted from gross sales before the customer makes payment.

8 0
3 years ago
N
ankoles [38]

Answer:

Stocks is the type of investments that offers both capital gains and interest income.

4 0
3 years ago
Bank deposits that can be withdrawn on demand in various ways, including with a check or debit card, are called:
Nady [450]

Answer:

Demand deposits is the answer of your question

4 0
3 years ago
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