The adjusting entry on December 31 includes <u>a debit to Insurance</u> <u>Expense; a credit to </u><u>Prepaid Insurance</u>
This is further explained below.
<h3>What is fire insurance?</h3>
Generally, A valid contract even against loss or damage caused by an unintentional fire or other incidents that are normally covered under a fire policy is what is known as fire insurance.
The term "fire insurance" refers to a kind of homeowners insurance that compensates the policyholder for financial losses and damages brought on by the fire.
In conclusion, There is often some level of fire protection included in the majority of plans; however, homeowners may be able to obtain extra coverage in the event that their property is destroyed or damaged as a result of the fire.
Read more about fire insurance
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Answer:
The Journal entries are as follows:
(1)
Equipment A/c Dr. $71,890
To cash $3,790
To accounts payable $68,100
(To record the purchase of equipment)
Workings:
Equipment value:
= Purchase price + Sales tax + Freight charges for shipment of equipment + Installation of equipment
= 64,000 +4,100 + 890 + 2,900
= $71,890
Cash Paid:
= Freight charges for shipment of equipment + Installation of equipment
= 890 + 2,900
= $3,790
Accounts payable = Purchase price + Sales tax
= 64,000 +4,100
= $68,100
(2)
Prepaid Insurance A/c Dr. $1,090
To cash A/c $1,090
(To record any expenditures not capitalized in the purchase of equipment)
Answer:
The buyer can sue for specific performance of the contract. In real estate, in order for the buyer to be able to sue for specific performance, he/she must have all the money (or mortgage) ready to finish the transaction. It is very difficult for someone to sue for damages for not wanting to complete the sale of a house because houses are unique in a way that similar houses in different neighborhoods or even streets might be worth a lot more or less.
When you sue for specific performance, the non-breaching party will request that the other party performs their side of the contract.
Answer:
1. Service cost
Interest cost
2. Dr Pension expense $67
Dr Plan assets $55
Cr Amortization of prior service cost—OCI $2
Cr PBO $120
Explanation:
1. The components of pension expenses that tend to affects the net pension liability are:
SERVICE COST and INTEREST COST reason will be that both SERVICE COST and INTEREST COST help to increase net pension liability while
Amortization of prior service cost on the other hand does not affect PBO or plan assets which simply means that it does not in any way change the net pension liability.
2. Preparation of the journal entry to record the pension expense.
Based on the information given the journal entry to record the pension expense will be :
Dr Pension expense $67
Dr Plan assets $55
Cr Amortization of prior service cost—OCI $2
Cr PBO $120
($70+$50=120)
Answer:
d. 23.84%
Explanation:
Years Cash-flow
0 -650,000
1 350,000
2 325,000
3 150,000
4 180,000
Using MS Excel IRR function
Internal rate of return = IRR(Cashflow year 0, 1, 2, 3, 4)
Internal rate of return = 23.84%
So, the internal rate of return of this project is 23.84%.