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
a_sh-v [17]
3 years ago
6

On July 1, 2020, Marigold Corp. pays $13,200 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal

years ending December 31. For Marigold Corp., journalize and post the entry on July 1 and the annual adjusting entry on December 31.
For Dobbs Co., journalize and post the entry on July 1 and the adjusting entry on December 31.
Business
1 answer:
Juliette [100K]3 years ago
7 0

Answer:

For Marigold

The journal entries on July 1 , 2020 are:

Dr Insurance prepayment   $13,200

Cr Cash                                              $13,200

being insurance paid for in advance

The adjusting entry at the close of the year

Dr Insurance expense        $2,200

Cr Insurance prepayment                $2,200

Being insurance expense incurred in the year

The other party is Kalter insurance not Dobbs Co:

he journal entries on July 1 , 2020 are:

Dr Cash                              $13,200

Cr Prepaid revenue                    $13,200

being revenue received in advance

The adjusting entry at the close of the year

Dr Prepaid revenue        $2,200

Cr Revenue                                   $2,200

Being recognition earned in the year

Explanation:

Upon the payment of the insurance , the cash account of the paying company is credited and that of the receiving company debited .

The other entry in the paying company is insurance prepayment while that of the receiving company is prepaid revenue .

You might be interested in
Suppose the equilibrium price of a pound of bacon is $3.50. The government decides that people have a right to a pound of bacon
VikaD [51]

Answer:

The correct answer is option D.

Explanation:

The equilibrium price of a pound of bacon is $3.50.

In order to protect the consumers, the government imposes a binding price ceiling of $1.50.  

This price ceiling will create a shortage of bacon or an excess demand for bacon in the market.  

Because of the law of demand and law of supply, at price lower than the equilibrium price, the quantity demanded will be higher while the quantity supplied will be lower.  

This difference between quantity demanded and quantity supplied will create an excess demand in the market.

6 0
3 years ago
MySpace is a social network that is targeted primarily to people under the age of 25 years old. In 2005, when MySpace was the le
Gnesinka [82]

Answer:

Option C Social Factor.

Explanation:

Social factors includes the people's changing perceptions and preferences. In this case the customers of social networking was highly oriented towards using MySpace and started using Face-book, thereafter Whats-app was also among their priorities, Insta-gram stepped in and we saw a great market share capture by it. So the people preferences changes with time and this is Social factor (PESTLE Analysis).

3 0
3 years ago
Employees at Clearwater Plumbing Supply, Inc. asked the management to hold an election to determine which radio station would be
slavikrds [6]

Answer:

Check the explanation

Explanation:

Going by the question we can derive a scenario whereby the employee cannot demonstrate disparate treatment since prohibiting a specific kind of music at work, even that which has been approved by a majority or popular employee vote, is not an unpleasant and adverse employment action.

6 0
3 years ago
Read 2 more answers
Company X has 2 million shares of common stock outstanding with a book value of $2 per share. The stock trades for $3 per share.
gladu [14]

Answer:

23.08%

Explanation:

The computation of the debt ratio is shown below:

Debt amount

= 2 million × 0.90

= 1.80 million

And,

Equity amount

= 2 million × 3

= 6 million

Now

debt ratio = debt amount  ÷ (amount of debt + amount of equity)

= 1.80 million ÷ ( 6 million + 1.80 million)

= 23.08%

4 0
3 years ago
On January 1, 2020, Bonita Corporation purchased 20% of the common stock outstanding of Sandhill Corporation for $265000. During
trapecia [35]

Answer:

The balance of the Stock Investments—Sandhill account on the books of Bonita Corporation at December 31, 2020 is <u>$272,800 (= $265,000 - $8,600 + $16,400)</u>

Explanation:

the journal entries to record the transactions are:

January 1, 2020, Bonita Corporation purchases 20% of Sandhill Corporation

Dr Investment in Sandhill Corporation 265,000

    Cr Cash 265,000

xx, 2020, Sandhill Corporation distributed $43,000 in cash dividends

Dr Cash 8,600

    Cr Investment in Sandhill Corporation 8,600

yy, 2020, Sandhill Corporation reported net income $82,000

Dr Investment in Sandhill Corporation 16,400

    Cr Revenue on investment in Sandhill Corporation 16,400

3 0
3 years ago
Other questions:
  • Transactional relationships: Group of answer choices A.None of the above. B.are emphasized by buyers when the purchase is viewed
    13·1 answer
  • If a company makes three entries into the cash receipts journal for cash received from customers paying on account of $500, $750
    10·2 answers
  • Firms that decide against international expansion to play it safe ________.
    6·1 answer
  • The May bank statement for Accounting Services shows a balance of $6,300, but the balance per books shows a cash balance of $7,9
    5·2 answers
  • Increasing marginal opportunity cost means that the production possibility curve is: bowed out so that for every additional unit
    10·1 answer
  • McLaughlin borrowed her roommate's car just to take her mother to the hospital. While delivering her mother at the hospital, McL
    7·1 answer
  • As part of the American Recovery and Reinvestment Act, $7 million was earmarked to build a bridge over a railroad crossing so th
    6·1 answer
  • This is to inform you that your letter of April 4 has been circulated to me, as I am in charge of such requests. After your inqu
    12·1 answer
  • Empower Inc., is a software development firm that firmly believes in common unspoken assumptions along the lines of conventional
    14·1 answer
  • What are the three basic types business organizations? *
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!