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ivanzaharov [21]
3 years ago
10

Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. The compa

ny immediately debited the Insurance expense account. By the end of the period, $400 of the policy had expired. Demonstrate the required adjustment needed at the end of the period.
Business
1 answer:
zysi [14]3 years ago
3 0

Explanation:

The adjusting journal entry to record the given adjustment is shown below:

At the year-end

Insurance expense A/c Dr. A/c $800

       To Prepaid Insurance A/c $800

(Being insurance expense is recorded)

The computation is given below:

= Prepayment done for 6 months insurance policy - expired insurance

= $1,200 - $400

= $800

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The answer is, larger; downward.

  • Other things being equal, a larger supply of workers tends to put  downward pressure on real wages.

<h3>How do wage increases affect the demand for and supply of labor?</h3>
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  • There will be a reduction in the amount of labor requested and an upward shift in the demand curve.

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<h3>How does wage increase affect supply?</h3>
  • The aggregate supply curve shifts inward when the money wage rate increases, which results in a decrease in supply at all price levels.
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____ can be produced independently of the consumer and then stored and shipped.
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What involves preparing financial reports that provide information about the business's performance to external parties such as
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Answer: Financial Accounting

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