Accounting?
Gemini asked:
Please answer and explain the following
1. the balance in the Prepaid Insurance account before adjustment at the end of the year is $480, which represents 12 months’ insurance paid on 12/1. The adjusting entry required on 12/31, the end of the fiscal year is (debit Insurance Expense,$40; credit Prepaid Insurance, $40, right??)
Please answer and explain the following
1. the balance in the Prepaid Insurance account before adjustment at the end of the year is $480, which represents 12 months’ insurance paid on 12/1. The adjusting entry required on 12/31, the end of the fiscal year is (debit Insurance Expense,$40; credit Prepaid Insurance, $40, right??)
2 A firm pays weekly wages of $10,000 on Friday for a five-day week ending on that day. If the fiscal period ends on Wednesday, should the adjusting entry be (debit Wages Expense, $6,000; credit Wages Payable, $6,000, right??)
3. Failure to adjust for accrued wages at year end will result in an (Understatement of total liabilities, right??)
4. Which of the following is an example of a deferral?
a. Legal fees earned but not yeat collected.
b. Estimated income taxes for the year.
c. A one-year insurance policy purchased but not expensed.
d. Medical fees earned but not yet collected.
1. the balance in the Prepaid Insurance account before adjustment at the end of the year is $480, which represents 12 months’ insurance paid on 12/1. The adjusting entry required on 12/31, the end of the fiscal year is (debit Insurance Expense,$40; credit Prepaid Insurance, $40, right??)
Right.
2 A firm pays weekly wages of $10,000 on Friday for a five-day week ending on that day. If the fiscal period ends on Wednesday, should the adjusting entry be (debit Wages Expense, $6,000; credit Wages Payable, $6,000, right??)
Right again.
3. Failure to adjust for accrued wages at year end will result in an (Understatement of total liabilities, right??)
And overstatement of profits
4. Which of the following is an example of a deferral?
c. A one-year insurance policy purchased but not expensed.
This would be a deferred expense and will be expensed off monthly.