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Nuetrik [128]
3 years ago
11

Hurlburt Corporation renewed an insurance policy for 3 years beginning July 1 and recorded the $81,000 premium in the prepaid in

surance account. The $81,000 premium represents an increase of $23,400 from the $57,600 premium charged 3 years ago.
Assuming Hurlburt's records its insurance adjustments only at the end of the calendar year, the adjusting entry required to reflect the proper balances in the insurance accounts at

December 31 Hurlburt's year end is to

A. Debit insurance expense for $67,500 and credit prepaid insurance for $67,500.

B. Debit insurance expense for $13,500 and credit prepaid insurance for $13,500.

C. Debit prepaid insurance for $13,500 and credit insurance expense for $13,500.

D. Debit insurance expense for $23,100 and credit prepaid insurance for $23,100.
Business
1 answer:
Slav-nsk [51]3 years ago
8 0

Answer:

B. Debit insurance expense for $13,500 and credit prepaid insurance for $13,500.

Explanation:

If 6 months past from the beginning of the contract then these past 6 months must be reflected as expenses in the balances.

$13,500 reflect the expenses of the past 6 months from July 1 to December 31, then the entry Debit insurance expense for $13,500 and credit prepaid insurance for $13,500 reflect the proper balances at the end of the year.

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Your neighbor offers you an investment opportunity, which will pay a single lump sum of S2,000 five years from today. The invest
Mazyrski [523]

Answer:

This question has a missing information. I have found the complete version and pasted it down below;

"Your neighbor offers you an investment opportunity, which will pay a single lump sum of S2,000 five years from today. The investment requires a single payment of <em>$1,500 today</em>. The return on the investment is % A. 4.195 B. 4.729 C. 5.361 D. 5.922 E. 6.961 "

Explanation:

This question requires you to find that discount rate given a single future cashflow. $2,000 is expected 5 years from today, hence the future value. $1,500 payment today is the dollar value today, hence the Present value.

Using a financial calculator, you will key in the following inputs;

Total duration; N = 5

Present value; PV = -1,500 (it's a cash outflow hence negative)

Recurring payment; PMT = 0

Future value; FV = 2,000

then find the rate by keying in CPT I/Y = 5.922%

Therefore, the return on the investment is 5.92%

7 0
3 years ago
Winterbourne is considering a takeover of Monkton Inc. Winterbourne has 18 million shares outstanding, which sell for $56 each.
Whitepunk [10]

Answer:

Price of per share to be paid by Winterbourne to Monkton shareholders  =$ 33 M

Explanation:

Before merger the netwoth  = No.of shares * Price

= 13M * $ 28

= $ 364 M

Price of per share to be paid by Winterbourne to Monkton shareholders  = [ Net worth of Monkton before Merger + Merger Gain ] / No.of Shares

= [ $ 364 M + $ 65 M ] / 13 M

= $ 33 M /

4 0
2 years ago
Suppose the announcement of a new head of the central bank, with a reputation of being soft on inflation, increases expected inf
puteri [66]

Answer:

Nominal interest rate (i)= expected inflation rate (f) + real interest rate (r)

i= 5+r

Explanation:

The Fisher Effect is an economic theory created by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates.

The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate.

The Fisher Effect can be seen each time you go to the bank; the interest rate an investor has on a savings account is really the nominal interest rate.

6 0
3 years ago
Green Care Landscaping Company minimizes attention to a price increase by selling lawn care treatments to a subsidiary, Keep It
Len [333]

Answer:

The correct answer is B. indirect blindness.

Explanation:

Blindness is lack of vision. It can also refer to vision loss that cannot be corrected with conventional lenses or with contact lenses.

Partial blindness means that you have very limited vision.

Complete blindness means that you cannot see anything and DO NOT see the light. (Most people who use the term "blindness" mean complete blindness.)

People with less than 20/200 vision with glasses or contact lenses are considered legally blind in most states in the United States.

Vision loss refers to partial or complete loss of vision. Such loss of vision can happen suddenly or over time.

4 0
3 years ago
Which of the following is a benefit of increased levels of education? A. The longer you go to school, the more likely it is that
kolezko [41]
The answer is B i think

5 0
3 years ago
Read 2 more answers
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