1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aleonysh [2.5K]
3 years ago
14

On December 31, 2018, the unadjusted balance in Prepaid Insurance was $2580. This was the amount paid in the middle of the year

for a two-year insurance policy with coverage beginning on July 1, 2018. The unadjusted balance in Insurance Expense was $390, which was the cost of insurance from January 1 to June 30, 2018.
What is the adjusted journal entry for both insurance expense and prepaid insurance?
Business
1 answer:
mixer [17]3 years ago
4 0

Answer:

Debit Insurance expense $665

Credit Prepaid Insurance  $665

Being entries to recognize insurance expense incurred between July and December, 2018

Explanation:

When an amount is prepaid for insurance expense to be incurred at a later date, the entries required are

Debit Prepaid insurance account

Credit Cash account

When the expense is incurred, the entries then required will be

Debit Insurance expense

Credit Prepaid Insurance

Since the $2,580 paid was for a two-year insurance policy with coverage beginning on July 1, 2018, at at December 31, 2018, the expense would have been incurred for 6 months out of the 24 months (2 years) paid for. This expense amounts to

= 6/24 × $2,580

= $665

Hence the adjustment required

Debit Insurance expense $665

Credit Prepaid Insurance  $665

Being entries to recognize insurance expense incurred between July and December, 2018

You might be interested in
Make a case that development economics might be merely a combination of all the other subfields of economics, only applied to lo
Alina [70]

Answer:

Case explained below

Explanation:

Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development, economic growth and structural change but also on improving the potential for the mass of the population, either through health, education and workplace conditions, whether through public or private channels.

Development economics must encompass the study of institutional, political, and social as well as economic mechanisms for modernizing an economy while eliminating absolute poverty and transforming states of mind as well as physical condition.

7 0
3 years ago
______is the satisfaction or value people extract from consumed services or goods and those derived from pursued activities. A.
Mars2501 [29]

Answer:

utility

Explanation:

;/

7 0
3 years ago
Which component of table setting would include the wineglass?
lozanna [386]
The wine glass goes on the left
6 0
2 years ago
A person with a poor self-concept is more likely to be hired for a position, because they are easier to “mould”.
Charra [1.4K]

Answer:

False.

Explanation:

Self-concept describes the kind of person or personality an individual thinks he or she has.

People that have a realistic self-concept about themselves basically see themselves as they are, not what they or the society at large wants them to be.

The statement that a person with a poor self-concept is more likely to be hired for a position, because they are easier to “mould” is false and an absolutely incorrect notion.

First of all, no organization is interested in hiring an individual with a poor self-concept because they can't add any value to the organization in the long-run.

6 0
3 years ago
Which type of scientific statement is defined as a hypothess D
Lilit [14]
A hypothesis is a educated guess made about the predicted outcome of the experiment. They are made before starting the scientific experiment.
4 0
2 years ago
Read 2 more answers
Other questions:
  • The ________________________ is the amount for goods and services that the international assignee is expected to spend in the ho
    5·1 answer
  • One major difference between a nation's balance of trade and its balance of payments is that
    13·1 answer
  • 5. The Top 10 list of environmental challenges in a repair shop includes all of the following, EXCEPT: A) Antifreeze, Oil &
    15·2 answers
  • Review the steps in the accounting cycle and answer the following​ questions:
    9·1 answer
  • Inventories refer to A. goods that are a result of new inventions. B. goods that have been produced but have not yet been sold.
    14·1 answer
  • Please identify what type of error the following sentence includes: While searching for employment, I travelled to Shanghai, Chi
    5·1 answer
  • A learning rate of 0.9 means each __________ of the cumulative output reduces unit costs by __________.
    6·1 answer
  • If the required reserve ratio
    14·1 answer
  • Companies and their customers working together to develop products that meet customer needs is known as​ ________.
    9·1 answer
  • Suppose 10 new hair salons open in this city. Would this have an effect on the supply and / or demand curves? Explain
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!