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madreJ [45]
3 years ago
5

What is the proper adjusting entry at December 31. the end of the accounting period, if the balance in the prepaid insurance acc

ount is dollar 7, 750 before adjustment, and the unexpired amount per analysis of policies is. dollar 3, 250?
A. Debit Insurance Expense, dollar 3, 250; credit Prepaid Insurance. dollar 3, 250.
B. Debit Prepaid Insurance; dollar 4, 500; credit Insurance Expense, dollar 4, 500.
C. Debit Insurance Expense, dollar 4, 500; credit Prepaid Insurance, dollar 4, 500.
D. Debit Insurance Expense, dollar 7, 750; credit Prepaid Insurance, dollar 7, 750.
E. Debit Cash, dollar 7, 750; Credit Prepaid Insurance, dollar 7, 750.
Business
1 answer:
Artemon [7]3 years ago
7 0

Answer:

C. Debit Insurance Expense, dollar 4, 500; Credit Prepaid Insurance, dollar 4, 500

Explanation:

Date       Account Title                  Debit              Credit

Dec 31   Insurance expense         $4,500

              Prepaid insurance                               $4,500

              ($7,750-3,250)

Option C is correct.

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Answer:

A. $ 450 comma 000

Explanation:

In order to compute the fixed cost per month first we have to determine the variable cost per unit which is shown below.

Variable cost per hour = (High total  cost - low total cost) ÷ (High production volume - low production volume)

= ($710,000 - $550,000) ÷ (13,000 units - 5,000 units )

= $160,000 ÷ 8,000 units

= $20

Now the fixed cost equal to

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= $710,000 - (13,000 units × $20)

= $710,000 - $260,000

= $450,000

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kondor19780726 [428]
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