Answer:
The proper adjusting entry on December 31 is, D. Debit Insurance Expense, $4,700; credit Prepaid Insurance, $4,700.
Explanation:
The entry of prepaid insurance made earlier was $8,150 and on December 31, it was calculated that the unexpired amount of insurance was $3,450. So first we will calculate the amount of prepaid insurance which has been expired,
$8,150 - $3,450 = $4,700
To record the expired prepaid insurance, we will first debit prepaid insurance expense with $4,700 and then credit prepaid insurance with $4,700.
Prepaid Insurance is an asset and it will decrease by a credit of $4,700, so that the remaining balance in prepaid insurance account is $3,450 which is the remaining unexpired prepaid insurance.
Answer:
b) The $355,000 manufacturing cost of the tables already incurred.
Explanation:
The Business has already incurred this expense in making the coffee tables, this can not be done. Therefore, it does not make sense to consider this when considering whether to complete the
Tables, or sell them as they now are
All other points contribute either directly or indirectly to the decision that the company is about to take in this regard.
So, the correct answer is b
Answer:
$2,205
Explanation:
The amount available after two years can be calculated using the formula
A= P x ( 1 + r) ^n
where A = amount
P= principal: $2000
r = interest rate : 5%, or 0.05
n = number of compound periods: 2
A= $2000 x ( 1 + 0.05)^2
A= $2000 x1.1025
A= $2,205
Principal amount after two years = $2,205
Answer:
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Explanation: