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n200080 [17]
4 years ago
13

On July 1, 2022, Sandhill Co. pays $22,000 to Cullumber Company for a 2-year insurance contract. Both companies have fiscal year

s ending December 31.
Required:
Journalize the entry on July 1 and the adjusting entry on December 31 for Cullumber Company.
Business
1 answer:
drek231 [11]4 years ago
8 0

Answer:

Dr Prepaid insurance 22,000

Cr cash 22,000

Dr Insurance expense 5,500

Cr Prepaid insurance 5,500

Explanation:

Preparation of Journal entries

Based on the information given we were told that Sandhill Company pays the amount of $22,000 to another company which is Cullumber Company for a 2-year insurance contract in which Both the companies have fiscal years that is ending December 31 which means that the Journal entry will be recorded as:

Dr Prepaid insurance 22,000

Cr cash 22,000

Dr Insurance expense 5,500

Cr Prepaid insurance 5,500

[(22,000*6/12)/2]

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B) wash trades

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Therefore the option B is correct

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3 years ago
When employers use diplomas and degrees to determine who is eligible for jobs, even through the diploma or degree may be relevan
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When employers use diplomas and degrees to determine who is eligible for jobs, even though the diploma or degree may be relevant to the actual work, it becomes a Credential Society.

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2 years ago
A c corporation earns $9.50 per share before taxes. the corporate tax rate is 39%, the personal tax rate on dividends is 10%, an
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The total amount of taxes that the company will pay will be calculated as under -

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4 years ago
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After knowing the issue Jim should take appropriate steps to discard this practice from the organization.

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4 0
2 years ago
What is tax payable????????
alukav5142 [94]
<span>It's like a type of a</span><span> account in the current liabilities section of a </span><span>company's um I think balance sheet.</span>

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