When the accounts of Indiga Inc. are examined, the adjusting data listed bnlow are uncovaered on...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
When the accounts of Indiga Inc. are examined, the adjusting data listed bnlow are uncovaered on December 31, the end of an annual fiscal period. 1. The prepaid insurance account shows a cebit of $6,864, representing the cost of a 2-year fire insurance policy dated August 1 of the current year. 2. On November 1, Rent Revenue was credited for $1,872, representing revenue from a subrental for a 3-month period beginning on that date. 3. Purchase of advertising meterials for $732 during the year was recorded in the Advertising Expense account. On December 31, advertising materials of s285 are on hand. 4. Interest of $715 has accrued on notes payabie. Prepare the follawing in general journal form. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) (a) The adjusting entry for each Item. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. (b) The reversing entry for each item where appropriate. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. When the accounts of Indiga Inc. are examined, the adjusting data listed bnlow are uncovaered on December 31, the end of an annual fiscal period. 1. The prepaid insurance account shows a cebit of $6,864, representing the cost of a 2-year fire insurance policy dated August 1 of the current year. 2. On November 1, Rent Revenue was credited for $1,872, representing revenue from a subrental for a 3-month period beginning on that date. 3. Purchase of advertising meterials for $732 during the year was recorded in the Advertising Expense account. On December 31, advertising materials of s285 are on hand. 4. Interest of $715 has accrued on notes payabie. Prepare the follawing in general journal form. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) (a) The adjusting entry for each Item. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. (b) The reversing entry for each item where appropriate. No. Account Titles and Explanation Debit Credit 1. 2. 3. 4.
Expert Answer:
Answer rating: 100% (QA)
a No Account Titles and Explanation Debit Credit 1 Insurance Expense5280 524 1100 Prepaid Insura... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
Students also viewed these accounting questions
-
An examination of the Prepaid Insurance account shows a balance of $10,280 at the end of an accounting period, before adjustment. Prepare journal entries to record the insurance expense for the...
-
An examination of the Prepaid Insurance account shows a balance of $16,845 at the end of an accounting period, before adjustment. Prepare entries in journal form to record the insurance expense for...
-
When the accounts of Constantine Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period. 1. The prepaid insurance account shows a debit of...
-
Should courts ever enforce illegal contracts? If illegal contracts are void as a matter of law, what is the court enforcing? If courts will use equity powers or other roundabout ways to enforce...
-
How will changes in the labor force affect HRM practices for the next decade?
-
What opportunities and potential problems are posed by the formation of more than one coalition within an organization, each one advocating a different direction or alternatives? What steps can you...
-
For the most part, chairs change regularly, but the chief executive stays in place for a longer period of time. How can this situation affect the dynamics of the two positions?
-
Fores Construction Company reported a pretax operating loss of $135 million for financial reporting purposes in 2011. Contributing to the loss were (a) A penalty of $5 million assessed by the...
-
What is social selling? a. acting like a management consultant to solve customer problems b. generating sales by promoting the firm and encouraging demand for its products c. engaging customers in...
-
There is an array A made of N integers. Your task is to choose as many integers from A as possible so that, when they are put in ascending order, all of the differences between all pairs of...
-
Determine whether the functions y, and y2 are linearly dependent on the interval (0,1). Y1 = 2 cos?t-1, y2 = 4 cos 2t Select the correct choice below and, if necessary, fill in the answer box within...
-
Why do you think households purchases of new housing are included in the investment component of GDP rather than the consumption component? Can you think of a reason why households purchases of new...
-
Thousands of tourists visit European cities every year. Is tourism an import or an export to a country? Explain.
-
Assuming the population is stable, what effects will an increase in capital accumulation have on growth? Can a country generate sustained growth through rising capital investment?
-
How do time and the product cycle influence trade patterns?
-
Explain why the increase in globalization since the late 1960s might have resulted in a widening of the gap between the pay of low-skilled workers and high-skilled workers in developed economies.
-
8) Apply variable length subnet masking to calculate the addresses of each subnet as well as the host addresses for each subnet for the following IP address 172.112.0.0 / 16 a) 5 subnets - with 2050...
-
Don Griffin worked as an accountant at a local accounting firm for five years after graduating from university. Recently, he opened his own accounting practice, which he operates as a corporation....
-
Winter Treats Company purchased a special-purpose machine from Blanco Company, a French firm, on credit for 50,000. At the date of purchase, the exchange rate was $1.00 per euro. On the date of the...
-
Match the terms that follow with the appropriate definitions. 1. Accounting 2. Profitability 3. Liquidity 4. Financing activities 5. Investing activities 6. Operating activities 7. Financial...
-
Prepare the monthly income statement, monthly statement of owners equity, and the balance sheet at August 31, 2014, for Krishna Cleaning Company from the data provided in the adjusted trial balance...
-
Mahatma Gandhi, the famous Indian philosopher, said: "Cowards can never be moral." Explain what you think Gandhi meant by this statement.
-
Why is professional skepticism important for management accountants?
-
In what ways does professional skepticism help an auditor evaluate the sufficiency and competency of evidence in the process of examining the financial statements of a client company?
Study smarter with the SolutionInn App