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
Step2247 [10]
3 years ago
8

Let’s return to Tenisa and Randolf Singh and their retail and decorating business, Comfy Home.Comfy Home is a retail business se

lling a broad range of homeware, kitchen, and electrical appliances to consumers and small businesses. In addition to the home and kitchen appliances, Comfy Home makes and sells home decorating items including artisanal candles and holiday arrangements. The company has two stores located in the small city of Warmtown, USA. Its downtown store offers decorating services to the banks and small businesses in the vicinity. Tenisa Singh handles the candle making and decorating side of the business while Randolf Singh managers the stores. The business is wholly owned by Tenisa and Randolf Singh and was started by the couple in 2014.
As part of Comfy Home’sprepaid assets, there is a yearly insurance premium of $12,000. The new year has begun and Comfy Home’s accountant is preparing journal entries for the month of January. She has learned from Randolf that the insurance premium for this year is the same as for last year and was paid in cash on January 2, 2018 for the new year. What are the journal entries that the accountant will make at the end of the month of January to reflect the activity(ies) related to Comfy Home’s insurance?
Business
1 answer:
quester [9]3 years ago
6 0

Answer:

Comfy Home

Journal Entries:

Date      Account Title             Debit    Credit

Jan. 31  Insurance Expense   $1,000

            Prepaid Insurance                  $1,000

To record the insurance expense for January.

Previously:

Jan. 2  Prepaid Insurance   $12,000

           Cash                                      $12,000

To record the prepayment for insurance premium.

Explanation:

Insurance Expense for each month is calculated as Prepaid Insurance/Period of prepayment.  This is equal to $12,000/12 = $1,000. This implies that every month's account will be debited with $1,000 for Insurance Expense, while the Prepaid Insurance (asset) is credited to account for the use of the asset for the period (month).  For January's balance sheet, the Prepaid Insurance balance will be $11,000 ($12,000 - $1,000).

You might be interested in
What sum of money now is equivalent of $8,250 two years later, if the interest is 4% per 6-month period (8% compounded semi-annu
Vitek1552 [10]

Answer:

$7052.13

Explanation:

We can calculate the present value of money equivalent of $8,250 two years later by applying present value formula

DATA

Future value = $8,250

Interest rate = 4%

Number of periods = n = 2 years x 2 times a year = 4 times

Present value =?

Solution

PV = \frac{1}{1+(interest rate)^n} futurevalue

PV = ×\\frac{1}{1+(0.04)^4} 8250

PV = $7052.13

7 0
3 years ago
The purpose of a program is to provide listeners with
Vika [28.1K]
<span>The correct answer is letter D. an overview of the dramatic structure of the work. The purpose of a program is to provide listeners with an overview of the dramatic structure of the work.</span>
8 0
4 years ago
An electronics firm is currently manufacturing an item that has a variable cost of $.50 per unit and a selling price of $1.00 pe
Dmitry [639]

Answer: The company should not buy the new equipment

Explanation:

For the 1st case:

Revenue = Selling price × Number of units

= 1 × 30000

= $30,000

Total cost = Fixed cost + Variable cost

= 14000 + (0.5 × 30000)

= 14000 + 15000

= $29000

Profit = Revenue - Cost

= $30000 - $29000

= $1000

For the 2nd case:

Revenue = Selling price × Number of units

Revenue = Selling price × Number of units

= 1 × 50000

= $50,000

Total cost = Fixed cost + Variable cost

= 20000 + (0.6 × 50000)

= 20000 + 30000

= $50000

Profit = Revenue - Cost

= $50000 - $50000

= $0

Based on the calculation above, the company should not buy the new equipment as no profit will be made while currently a profit of $1000 is made.

3 0
3 years ago
What is the bottom-line message about the use of heroic measures in hospital care?
nlexa [21]
<span>To hospital staff, the answer to the question about "heroic measures" tells them what the patient and/or the next of kin will accept as 'standard of care' in the treatment of that patient in the event of a life-threatening state. Most facilities will break it down further to 1. no heroic measures to be taken at all,, 2 hydration and pain relief only, 3 hydration, feeding, and pain relief. and 4. all possible measures taken. In the parlance of today's world, this document may be called an End of Life Directive, Living Will, Do Not Resusitate Order, or Medical Power of Attorney. It all boils down to this-how much effort will be required from the facility by the patient or family to avoid liability for the death of the patient?</span>
5 0
4 years ago
An organized way for people to buy and sell stocks and for corporations to raise money is called the _____.
frozen [14]
An organized way for people to buy and sell stocks for corporations to raise money is called the stock market.
4 0
3 years ago
Read 2 more answers
Other questions:
  • Lucky louie just won the lottery!! he has a choice of taking $1,000,000 in cash or receiving $50,000 per year for 30 years begin
    6·2 answers
  • What is business administration?
    13·1 answer
  • Return on Assets is a valuable financial measurement because it indicates how profit margin, asset turnover, and the equity mult
    14·1 answer
  • What is the total stockholders' equity based on the following account balances?Common Stock $1,300,000Paid-In Capital in Excess
    14·1 answer
  • The SCOR model looks at a firm’s supply chain activities in three levels of increasing detail. Level 1 views SCM activities as
    5·1 answer
  • In a command economy, the government does not do which of the following?
    8·2 answers
  • Consider the following sequence of events: Congress passes a bill. The president vetoes it. Congress overrides the veto. The bil
    10·1 answer
  • At the end of the first month of operations, the Lamar Company's accountant prepared financial statements that showed the follow
    7·1 answer
  • On August 1, a $45,600, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principa
    12·1 answer
  • Okay so, I'm doing Financial Literacy and I understand nothing. I would really appreciate any help.
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!