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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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The two biggest drawbacks or disadvantages of unrelated diversification are:___________.
lapo4ka [179]

Answer:

c. demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.

Explanation:

An unrelated diversification can be defined as a situation in which an existing business or company enters or invest in an entirely new business or industry that do not have any similarity whatsoever with its original business or product line. For example, an automobile manufacturing company that decides to acquire or invest in a clothing or shoe business.

Hence, the two biggest drawbacks or disadvantages of unrelated diversification are demanding managerial requirements and limited competitive advantage potential that cross-business strategic fit provides.

Also, the difficulties in successfully managing a collection of unrelated different business and having minimal competitive advantage potential over its rivals in the industry that cross-business strategic fit provides is another disadvantage of unrelated diversification

3 0
2 years ago
The Bakery produces organic bread that is sold by the loaf. Each loaf requires 1/2 of a pound of flour. The bakery pays $2.50 pe
Ber [7]

Answer:

Data Table

Month July August September The third quarter

Flour budget (pound) 938 pounds 1,108 pounds 996 pounds 3,042 pounds

Flour budget (USD) $2,345 $2,770 $2,490 $7,605

Explanation:

Flour needs to produces organic bread:

In July = 1,500 x 1/2 = 750 pounds

In August = 1,880 x 1/2 = 940 pounds

In September = 1,680 x 1/2 = 840 pounds  

In October = 1,560 x 1/2 = 780 pounds

Flour needs on hand at the end of:

July = 940 x 20% = 188 pounds

August = 840 x 20% = 168 pounds

September = 780 x 20% = 156 pounds

Total flour needs:

In July = 750 + 188 = 938 pounds

In August = 940 + 168 = 1,108 pounds

In September = 840 + 156 = 996 pounds  

In the third quarter = 3,042 pounds

The bakery pays $2.50 per pound of the organic flour used in its loaves.

In July = 938 pounds x $2.50 = $2,345

In August = 1,108 pounds $2.50 = $2,770

In September = 996 pounds  $2.50 = $2,490

In the third quarter = $7,605

Data Table

Month July August September The third quarter

Flour budget (pound) 938 pounds 1,108 pounds 996 pounds 3,042 pounds

Flour budget (USD) $2,345 $2,770 $2,490 $7,605

7 0
2 years ago
Alpaca Corporation had revenues of $300000 in its first year of operations. The company has not collected on $19900 of its sales
lyudmila [28]

Answer:

$238,148

Explanation:

Total expenses:

= Inventory purchased + Salaries expense + Interest expenses + Insurance expense

= $85,000 + $15,000 + $3,300 + $3,900

= $107,200

Net income:

= Total revenue - Total expenses

= $300,000 - $107,200

= $192,800

Net income after tax:

= Net income - Taxes

= $192,800 - ($192,800 × 9%)

= $192,800 - $17,352

= $175,448

Cash balance:

= Net income after tax - Amount not collected on accounts receivable + Amount not paid on purchases - Prepaid insurance + Money invested by owners + Money borrowed

= $175,448 - $19,900 + $26,500 - $3,900 + $30,000 + $30,000

= $238,148

6 0
3 years ago
The first step in finding a job is locating job leads. Please select the best answer from the choices provided T F
Dominik [7]

true the first step is locating job leads


4 0
3 years ago
Read 2 more answers
Taylor is negotiating to buy some land. Under the first option, Taylor will give Ella $150,000 and assume her mortgage on the la
Anna11 [10]

Answer:

The cost basis for the land is equal under both options.

Explanation:

If Taylor pays Ella $150,000 in cash and assumes the mortgage of $100,000, the cost basis of the land will be $250,000 (= $150,000 + $100,000). If he decides to pay Ella the full amount of $250,000, that will also be the cost basis of the land.

The only real difference is that if Taylor decides to assume the mortgage, he will need a smaller initial cash flow ($150,000).

8 0
3 years ago
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