USA Quiz Accounting

Joined
Feb 4, 2023
Messages
7
Reaction score
0
Country
United States
A review of a ledger at its year end . Jul 31, 2021 produces the following unadjusted data for the preparation of the annual adjusting entries:
- prepaid insurance , Jul 31, 2021, unadjusted balance $8,600. The company purchased an insurance policy on Dec 01, 2019 with a 2 year term which expires Nov 30, 2021.
1/ how much insurance expires per month for the building ?
2/what was the original purchase price of the policy on Dec 01,2019?
3/ how much should the adjusted balance in the prepaid insurance account be on Jul 31, 2021?
thanks,
 

BIG E

VIP Member
Joined
Dec 19, 2020
Messages
294
Reaction score
41
Country
United States
1) $ 2,150.00 $ 8,600 / 4 months until end of policy

2) $51,600.00 $ 2,150 x 24 months

3) $ 8,600.00
 
Joined
Feb 4, 2023
Messages
7
Reaction score
0
Country
United States
3 / i thought the prepaid insurance would be 2,150 .00. The amount 8,600.00 is an unadjusted balance isn’t it ?
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top