The Amount Of Insurance Expired During The Year Is $20 250

And $2,680 Of Office Supplies Were Purchased During The Year.

For example, a liability policy may have a $25,000 per claim limit and an aggregate limit of $100,000. The company will record the payment with a debit of $12,000 to prepaid insurance and a credit of $12,000 to cash. • supplies on hand on july 31 are $2,850.

The Income Statement Account Insurance Expense Has Been Increased By The $900 Adjusting Entry.

The balance in the prepaid insurance account before adjustment at the end of the year is $27,000. Enter $5,000 as your current amount saved. (a) the amount of unexpired insurance applicable to future periods is $1,000;

Was Organized On January 2, Year 4, With 30,000 Authorized Shares Of $10 Par Common Stock.

To reduce the insurance expense to $200 you need to credit insurance expense for $2,200. Depreciation of equipment for the year $5,800 e. Depreciation for the month is $100.

Insurance Policies Are Usually Purchased In Advance.

Supplies on hand at december 31 $400 c. Accrued salaries and wages at december 31 $2,300 g. On december 31, 2018, the unadjusted balance in prepaid insurance was $2,640.

The Insurance Company Pays The Rest.

$2,400 divided by the 12 months of coverage = $200 per month. (b) the amount of unexpired insurance applicable to futre periods is $6,750. Supplies on hand at december 31 $400 c.