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LiRa [457]
3 years ago
14

Assume that on September 1, Year 1, a six-month property insurance premium of $12,000 was paid for a policy whose coverage began

on that day. Assume also that the Prepaid Insurance account was debited for $12,000 at this time. The December 31, Year 1, adjustment with respect to the this policy will include a:
Business
1 answer:
inn [45]3 years ago
6 0

Answer:

Debit Insurance expense $8,000

Credit Prepaid insurance $8,000

Explanation:

The company uses asset method of recording the purchase of insurance. Hence, at end of year end the company must recognize the expire portion of the policy and charge it against insurance expense.

$12,000 / 6 months = $2,000 (monthly insurance expense)

$2,000 x 4 months (September 1 to December 31) = $8,000

Entry:

Debit Insurance expense $8,000

Credit Prepaid insurance $8,000

The balance of the prepaid insurance at the end of first year is $4,000 (12,000 - 8,000).

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A person's debt-to-income ratio describes:
Yanka [14]

Answer:

O D. how much the person has borrowed compared to how much he or

she earns

Explanation:

Your debt-to-income ratio is all your monthly debt payments divided by your gross monthly income. This number is one way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow. ... If your gross monthly income is $6,000, then your debt-to-income ratio is 33 percent.

8 0
3 years ago
Read 2 more answers
Bird Brain Co. reported net income of $46,300 for the year ended December 31, 2018. January 1 balances in accounts receivable an
Galina-37 [17]

Answer:

d. $52,100

Explanation:

Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.  

These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income

The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:

Cash flow from Operating activities - Indirect method

Net income $46,300

Adjustment made:

Add: Decrease in accounts receivable $2,200 ($23,800 - $21,600)

Add: Increase in accounts payable $3,600     ($24,500 - $28,100)

Total of Adjustments $5,800

Net Cash flow from Operating activities                  $52,100

3 0
4 years ago
Sid Maxwell is the head of legal affairs at Hudson Inc., an American toy manufacturer. A. Hudson's signature toy, the Witty Para
mr Goodwill [35]

Answer:

trade secret

Explanation:

THIS IS THE COMPLETE QUESTION BELOW

Sid Maxwell is the head of legal affairs at Hudson Inc., an American toy manufacturer. Hudson's signature toy, the Witty Parakeet, includes an embedded software program that allows the bird to interact with children. Hudson is currently planning to expand its market in Asia but Sid is concerned about reports of software piracy in the region.

The software program embedded in Hudson's signature toy, the Witty Parakeet, is an example of a(n) ________.

Trade secret can be regarded as one of the intellectual property which is a process/ practice such as design, patterns or instrument that is generally not revealed outside the company. It gives a company an edge over her compititors

8 0
3 years ago
What is the focus of fiscal policy?
HACTEHA [7]

Answer:

c

Explanation:

6 0
3 years ago
Read 2 more answers
On July 1 of the current year, Marcia purchases a new home and borrows $320,000. Marcia is required to pay two points on the loa
snow_lady [41]

Answer:

D) $6,400

Explanation:

To calculate the points deducted by Marcia in the current year, we use the following method

Since she collected the loan in July of the current year, there is five (5) months remaining in the current year, for Marcia to deduct any point, the will need to divide the number of month(s) remaining by the money she borrowed while we have have as;

$320,000/ 5

= $64,000

7 0
3 years ago
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