The prepaid insurance account had a balance of $9,400 at the beginning of the year. The account was debited for $10,400 for premiums on policies purchased during the year.

Journalize the adjusting entry required at the end of the year for each of the following situations:
a. The amount of unexpired insurance applicable to future periods is $3,730.
b. The amount of insurance expired during the year is $18,100.

Answer:

Following are the response to the given points:

Explanation:

[tex]\text{Insurance Expense} =\text{ Beginning Prepaid Insurance} + \text{Cash Premium Paid} -\text{Ending Prepaid Insurance}[/tex]

                             [tex]= \$9,400 + \$10,400 - \$3,730\\\\ = \$16,070[/tex]

[tex]Date \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ General \ Journal \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Dr. \ \ \ \ \ \ \ \ \ Cr. \\\\[/tex] [tex]March \ 31\ \ \ \ \ \ \ \ Insurance \ Expense \ \ \ \ \ 16,070 \ \ \ \ \ \ \ \ \ \ \ \ \ \\\\[/tex]

                       [tex]Prepaid\ Insurance \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 16,070\\\\[/tex]

For point b:

[tex]Date \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ General \ Journal \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ Dr. \ \ \ \ \ \ \ \ \ Cr. \\\\[/tex] [tex]March \ 31\ \ \ \ \ \ \ \ Insurance \ Expense \ \ \ \ \ 18,100 \ \ \ \ \ \ \ \ \ \ \ \ \ \\\\[/tex]

                       [tex]Prepaid\ Insurance \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 18,100\\\\[/tex]

Decruitment is the planned elimination of ________ in an organization. A) jobs
B) managerial hierarchy C) cross-functional teams D) departments

XYZ Industries makes heavy construction equipment. The standard for a crane calls for 20 direct labor-hours at $24 per direct labor-hour. During a recent period 875 cranes were made. The labor efficiency variance was $1,200 Unfavorable. How many actual direct labor-hours were worked

Diamond Boot Factory normally sells its specialty boots for $35 a pair. An offer to buy 110 boots for $29 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $13 and special stitching will add another $1 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. Enter the amount as a positive number. The Diamond Boot Company is operating at less than capacity and could accept the offer without disrupting normal operations. Differential per pair of boots from accepting the special order is $fill in the blank 2 .

Goodwill arises when one firm acquires the net assets of another firm and pays more for those net assets than their current fair value. Suppose that Target Co. had operating income of $1,215,000 and net assets with a fair value of $5,400,000. Takeover Co. pays $8,100,000 for Target Co.’s net assets and business activities.

Required:
a. How much goodwill will result from this transaction?
b. Calculate the ROI for Target Co. based on its present operating income and the fair value of its net assets.
c. Calculate the ROI that Takeover Co. will earn if the operating income of the acquired net assets continues to be $180,000.
d. What reasons can you think of to explain why Takeover Co. is willing to pay $300,000 more than fair value for the net assets acquired from Target Co.?

which activity would a consumer most likely preform

There is overwhelming evidence that environmental and situational factors strongly affect leadership.Of the following,which is the best example of one of those situational factors?
A) Positive personality
B) Pragmatism about solutions
C) Seating arrangements
D) Diversity of network contacts

At the quantity of 682 orders of Crispy Chicken Sandwich Tacos from Taco Bell, the marginal social benefit of a Crispy Chicken Sandwich Taco is $3.45 and the marginal social cost is $2.60. To produce the efficient quantity of Crispy Chicken Sandwich Tacos:_________

a. fewer Crispy Chicken Sandwich Tacos should be produced.
b. there should be no change in the amount of Crispy Chicken Sandwich Tacos produced.
c. More information on production costs is needed to determine the efficient level of Crispy Chicken Sandwich Tacos.
d. more Crispy Chicken Sandwich Tacos should be produced.

barcain credit corp. wants to earn an effective annual return on its consumer loans of 12 percent per year. the bank uses daily compounding on its loans. What interest rate is the bank required by law to report to potential borrowers

What are the types of model risk

Buying Paint April is at the hardware store and must decide whether to buy paint in 11 individual quart cans or to buy it in both gallon and quart cans. Here are the facts:
4 quarts
1 gallon
1 quart costs $4.39
1 gallon costs $13.99
What should April do?
1. Find the cost.
2. Find out how many gallons to buy 2 Gallons.
3. Find the cost. of 4 quarts.

According to the growth accounting studies, if you lived in a country where illiteracy was high and 40% of the children left school early and did not complete their education what would probably be the results for that country?
a. Average income in the country will see significant increases.
b. There would be both a human and economic loss.
c. The economic status of the country would continue to rise.
d. More technological breakthroughs would happen in this country.

Each of these items must be considered in preparing a statement of cash flows for Flint Corporation. for the year ended December 31, 2022.For each item, state how it should be shown in the statement of cash flows for 2022.a. Issued bonds for $150,000 cash.
b. Purchased equipment for $200,000 cash.
c. Sold land costing $50,000 for $50,000 cash.
d. Declared and paid a $20,000 cash dividend.

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost, factory overhead is charged to expense as it is incurred because it is a period cost.
A. True
B. False

You own a bond that has a duration of 7 years. Interest rates are currently 8%, but you believe the Fed is about to increase interest rates by 28 basis points. Your predicted price change on this bond is ________.
a. +1.81%
b. +6.48%
c. −6.48%
d. −1.81%

What are the purchase goods for cash Rs. 12,000 and for credit Rs. 8,000 (journal entries)?

On January 1, Eastern College received $1,280,000 from its students for the spring semester that it recorded in Unearned Tuition and Fees. The term spans four months beginning on January 2 and the college spreads the revenue evenly over the months of the term. What amount of tuition revenue should the college recognize on February 28? Assume the college prepares monthly financial statements.a. $640,000.b. $1,280,000.c. $880,000.d. $960,000.e. $320,000.

In its first year of operations, Sunland Company recognized $33,800 in service revenue, $6,700 of which was on account and still outstanding at year-end. The remaining $27,100 was received in cash from customers. The company incurred operating expenses of $19,600. Of these expenses, $12,640 were paid in cash; $6,960 was still owed on account at year-end. In addition, Sunland prepaid $3,250 for insurance coverage that would not be used until the second year of operations.
(a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting. Cash Basis Accrual Basis Net Income $ GA
(b) Which basis of accounting (cash or accrual) provides more useful information for decision-makers? Accrual basis Cash basis Media

Hunter's Hut is considering a project that will require additional inventory of $150,000 and will increase accounts payable by $125,000. Accounts receivable is currently $300,000 and is expected to increase by 10 percent if this project is accepted. What is the project's initial cash flow for net working capital

A student borrows $90,000 for business school at 9.0% stated annual interest with equal monthly payments over 9 years. Consider this as a loan with no payments or interest during school so that the problem structure is equivalent to a standard loan received one period before the first payment. How much is the monthly payment

Come and Go Bank offers your firm a discount interest loan with an interest rate of 9 percent for up to $21 million, and in addition requires you to maintain a 2 percent compensating balance against the face amount borrowed.
What is the effective annual interest rate on this lending arrangement? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Effective annual rate= %

The following information was available for the year ended December 31, 2016

Sales $260,000
Net income 38,340
Average total assets 560,000
Average total stockholders' equity 315,000
Dividends per share 1.23
Earnings per share 3.00
Market price per share at year-end 24.60

Required:
a. Calculate margin, turnover, and ROl for the year ended December 31, 2016.
b. Calculate ROE for the year ended December 31, 2016.

Define the term creativity​

Trevor heard a burglar entering through a living room window.He grinned as he picked up his gun. Crouching behind the sofa in his darkened home,he ambushed and killed the intruder with several well placed shots.He then added another notch in his trusty side-arm.Trevor most probably:____________

a. has exercised his constitutional right of self-defense.
b. has acted legally,because the shooting took place inside his home.
c. has acted legally if,but only if,the burglar was armed with a gun.
d. is guilty of a homicide,or at least voluntary manslaughter.

Star Corp., an accrual-method C corporation, incurred the following expenses in 2020 (all of which are ordinary and neccessary unless the facts indicate otherwise): Office rent: $50,000 CEO compensation: $1,500,000 Salary paid to janitor $250,000 Business meals: $60,000 (100% of the amount paid) Client entertainment $100,000 (100% of the amount paid) Traffic fines: $5,000 Advertising $70,000 Taxes & licenses (state, local & payroll) $30,000 Life insurance policy on CEO - premiums: $12,000 Average office rents in the area run $50,000-$55,000/year for similar office space. Star Corp's janitor is the CEO's sister. Reasonable salary for a janitor with similar experience, job description and work hours is $20,000/year. The CEO often runs late to important meetings, and he has a tendency to speed (and get speeding tickets) on his way. Star Corp. pays the speeding tickets. Star Corp. is the beneficiary on the life insurance policy. What is Star Corp.'s total deductible business expenses for the year?

The supplies account had a beginning balance of $1,693. Supplies purchased during the period totaled $4,413. At the end of the period before adjustment, $445 of supplies were on hand. Prepare the adjusting entry for supplies. If an amount box does not require an entry, leave it blank.

A company had the following information taken from various accounts at the end of the year:
Sales discounts $ 41,000
Deferred revenues $ 32,000
Total revenues $ 459,000
Purchase discounts $ 15,000
Sales allowances $ 35,000
Accounts receivable $ 205,000
What was the company's net revenues for the year?

Problems and Applications Q8 Suppose subway ridership in New York City declined by 4.3 percent after a fare increase of 25 cents to $1.50. Using the midpoint method, an estimate of the price elasticity of demand for subway rides is . True or False: According to your estimate, the Transit Authority's revenue rises when the fare increases. True False

1. Brodrick Company expects to produce 20,000 units for the year ending December 31. A flexible budget for 20,000 units of production reflects sales of $400,000; variable costs of $80,000; and fixed costs of $150,000. If the company instead expects to produce and sell 26,000 units for the year, calculate the expected level of income from operations.
2. Refer to information QS 1. Assume that actual sales for the year are $480,000, actual variable costs for the year are $112,000, and actual fixed costs for the year are $145,000 Prepare a flexible budget performance report for the year.

Consider the case of Cranked Coffee Company:
Cranked Coffee Company is a mature firm that has a stable flow of business. The following data was taken from its financial statements last year:
Annual sales $10,200,000
Cost of goods sold $6,630,000
Inventory $3,200,000
Accounts receivable $2,200,000
Accounts payable $2,400,000
Cranked Coffee’s CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.)
Value
Inventory conversion period 46.93; 41.71; 176.71; or 39.11
Average collection period 27.25; 78.73; 24.38; or 22.94
Payables deferral period 32.50; 41.07; 33.24; or 132.13
Cash conversion cycle 39.62; 122.77; 37.54; 45.88
B: Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs?
Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold.
Current assets should be divided by sales, but current liabilities should be divided by the COGS.
C. Is there generally a positive or negative relationship between net working capital and the cash conversion cycle?(In other words, if a firm has a high level of net working capital, is it likely to have a high or low cash conversion cycle?)
There is a positive relationship between net working capital and the cash conversion cycle.
There is a negative relationship between net working capital and the cash conversion cycle.
D. What are the four key factors in a firm’s credit policy?
Credit terms, discounts, credit standards, and collection policy
Credit period, discounts, credit standards, and collection policy
E. If the credit terms as published by a firm were 2/15, net 60, this means the firm will:
allow a 2% discount if payment is received within 15 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
allow a 15% discount if payment is received within 2 days of the purchase, and if the discount is not taken the full amount is due in 60 days.
F. The management at Cranked Coffee Company wants to continue its internal discussions related to its cash management. One of the finance team members presents the following case to his cohorts:
Case in Discussion
Cranked Coffee Company’s management plans to finance its operations with bank loans that will be repaid as soon as cash is available. The company’s management expects that it will take 40 days to manufacture and sell its products and 35 days to receive payment from its customers. Cranked Coffee’s CFO has told the rest of the management team that they should expect the length of the bank loans to be approximately 75 days.
Which of the following responses to the CFO’s statement is most accurate?
The CFO is not taking into account the amount of time the company has to pay its suppliers. Generally, there is a certain length of time between the purchase of materials and labor and the payment of cash for them. The CFO can reduce the estimated length of the bank loan by this amount of time.
The CFO’s approximation of the length of the bank loans should be accurate, because it will take 75 days for the company to manufacture, sell, and collect cash for its goods. All these things must occur for the company to be able to repay its loans from the bank.
Setting and implementing a credit policy is important for three main reasons:
It has a minor effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.
It has a major effect on sales, it influences the amount of funds tied up in receivables, and it affects bad debt losses.

The predicted 2017 costs for Gamma Motors are as follows: Manufacturing Costs Selling and Administrative Costs Variable $250,000 Variable $600,000 Fixed 450,000 Fixed 300,000 Average total assets for 2017 are predicted to be $5,000,000. If the company desires a 10 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for the desired profit