A reduction in retained earnings of $2,950,000.
$37(500,000 x .14) = &2,590,000
<span>The contractor can collect from the estate only. The contractor and Clay made an agreement only in oral form, not in written agreement. So, the contractor could not got after Clay. </span>
Business analysis phase of the new product development process
The adjusting entry would recognise insurance expense of $1,500.
Explanation:
The policy of an insurance company, tax insurance, insurance for business failure, etc. typically lasts a year, with payments charged in full (insurance premiums). Insurance policy is never the same as the financial year of the product. There are also expected to be several consolidated financial statements and some partial financial statements for compensation premiums.
Example of insurance premium payment:
On 31 December, the insurer files an correction report in order to document the expired (extended) cost of insurance and to the the pre-paid number. This is done with an premium fee of $1,000 and a prepayment policy bonus of $1,000.
