Journalizing prepaid insurance
NettetOmit explanations. The following errors took place in journalizing and posting transactions:a. Insurance of $18,000 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance.b. A withdrawal of $10,000 by Brian Phillips, owner of the business, was recorded as a debit to Wages Expense and a … NettetThe journal entry is debiting prepaid insurance $ 120,000 and credit cash $ 120,000. The journal entry increases prepaid insurance by $ 120,000 on the balance sheet. Cash is …
Journalizing prepaid insurance
Did you know?
Nettet20. apr. 2014 · Journalize the prepaid items in the books of Unreal Corp. using the below trial balance and additional information provided along with it. Prepaid Salaries – … NettetPrepaid expenses are the number of expenses paid in advance by one person to another, but the benefit is not yet received. The benefits of such expenses are to be utilized by the person on a future date. Once the amount has been paid for the expenses in advance (prepaid), a journal entry should be passed to record it on the date when it is paid.
NettetQuestion: Activity 5.a - Journalizing and Posting Transactions Journalize the adjusting entry needed at December 31 for each situation. Use the Chart of Accounts to review account names! Used prepaid insurance of $3,400 Date Accounts and Explanation Debit Credit Dec. 31 Used office supplies of $3,800 Date Accounts and Explanation Debit … NettetOn 01 July 2024, ABC needs to record unexpired insurance (or prepaid insurance) which is the current assets. The journal entry is debiting unexpired insurance $ 12,000 …
Nettet26. sep. 2024 · The journal entry would increase supplies and decrease cash. Insurance Premium Recording journal entries for insurance premiums are also similar. If you are paying cash, you are again increasing one asset account at the expense of the other because both cash and prepaid insurance are assets. NettetWhen a journal entry has to be made for the prepaid insurance to be adjusted for insurance expense which has already accrued, the total amount of the insurance …
NettetOn 01 July 2024, ABC needs to record unexpired insurance (or prepaid insurance) which is the current assets. The journal entry is debiting unexpired insurance $ 12,000 and credit cash $ 12,000. At the end of July, ABC has consumed insurance service for a month, so ABC needs to record insurance expenses as well.
Nettet8. feb. 2024 · The following errors took place in journalizing and posting transactions: Insurance of $18,800 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. Dividends of $18,000 were recorded as a debit to Wages Expense and a credit to Cash. Journalize the entries to correct the errors. penny calleyNettet17. sep. 2024 · prepaid insurance definition How is prepaid insurance recorded? The income statement account Insurance Expense has been increased by the $900 … penny callahan cheyenne wyNettetView ANSWER-KEY-Journalizing-Posting-Trial-Balance.doc from ACCOUNTING 111A at University of Cebu - Main Campus. I ... 2014 Account Titles Debit Credit Cash P110,400 Accounts Receivable 287,300 Supplies 114,400 Prepaid Insurance 40,000 Office Equipment 509,400 Notes Payable P115,000 Accounts Payable 270,400 Gascon , ... penny cafe docklandsNettetThis journal entry will increase total expenses on the income statement by $1,000 as of January 31, as the result of the one-month expense cost of the insurance. And at the … to buy toysNettetThe company can record the prepaid insurance with the journal entry of debiting the prepaid insurance account and crediting the cash account. In this journal entry, the company records the prepaid insurance as an asset since it is an advance payment which the company has not incurred the expense yet. to buy twitter for billionNettetThe unadjusted balance of the Office Supplies account is $3,000. Office supplies on hand total $1,900. Equipment depreciation was $500. On April 1, when the business prepaid $4,320 for a two-year insurance policy, the business debited Prepaid Insurance and credited Cash. Journalize the adjusting entry needed on December 31 for each situation. penny candy band winston salem ncNettetEntries to correct errors The following errors took place in journalizing and posting transactions: A. Insurance of 18,000 paid for the current year was recorded as a debit to Insurance Expense and a credit to Prepaid Insurance. B. Dividends of 10,000 were recorded as a debit to Wages Expense and a credit to Cash. to buy treadmill proform 730 cs