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sesenic [268]
3 years ago
9

On January 1, a company purchased a five-year insurance policy for $3,300 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. $660, credit Prepaid Insurance, $660.
b. Debit Prepaid Insurance, $660; credit Insurance Expense, $660.
c. Debit Insurance Expense, $660; credit Prepaid Insurance, $2,640.
d. Debit Prepaid Insurance, $3,300; credit Cash, $3,300.
Business
1 answer:
marissa [1.9K]3 years ago
7 0

Answer:

a. Debit Insurance Expense. $660, credit Prepaid Insurance, $660.

Explanation:

The adjusting entry is shown below:

Insurance expense Dr $660 ($3,300 ÷ 5 years)

          To Prepaid insurance

(Being the insurance expense is recorded)

here we debited the insurance expense as it increased the expense and credited the prepaid insurance as it decreased the assets

Therefore the option a is correct

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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
Trade between individuals and between nations leads to: Trade between individuals and between nations leads to: higher product p
kondor19780726 [428]

Answer:

The correct answer is B.

Explanation:

Trade between individuals and between nations leads to: Increased Specialization

3 0
2 years ago
Which of these is an example of a variable expense calculated in an organizational budget?
Ierofanga [76]
In an organizational budget, variable expenses are the total cost that depended on the amount of goods produced.
Example of variable expenses are:
- Raw material expenses
- Cost of plastic to make a handphone case
- Cost of carrots if the company is selling carrot pies
- etc
8 0
2 years ago
In the nervous system neurotransmitters such as acetylcholine are released at synapses between nerve cells. When the neurotransm
loris [4]

Answer:

Neuronal Signal Propagation

Explanation:

Signal propagation is the movement of signals between neurons. The process of sending these signals takes place in two steps: along the cell ( action potential) and between cells (neurotransmitters).

5 0
3 years ago
Ms. Liu shares her web data with you, which shows that she has an average of 500 daily page views during the weekdays, and an av
irakobra [83]

Answer:

1,250 on weekdays and 800 on weekends

Explanation:

During weekdays, each visitor views Ms. Liu's page twice, so the total number of visitors per day = 500 daily views / 2 views per visitor = 250 visitors per day. To calculate the total number of visitors for the five weekdays = 250 visitors per day x 5 days = 1,250 visitors

During weekends, each visitor views Ms. Liu's page three times, so the total number of visitors per weekend day = 1,200 daily views / 3 views per visitor = 400 visitors per day. To calculate the total number of visitors for the two weekend days = 400 visitors per day x 2 days = 800 visitors

6 0
3 years ago
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