Yodel & Company paid $3,600 on June 1, 2010, for a two-year insurance policy beginning on that date. The company recorded the entire amount as prepaid insurance. By using the following chart, calculate how much expense and prepaid insurance will be reported on the year-end financial statements. The company’s fiscal year end is December31.
Answer to relevant QuestionsMaximus Dog Company purchased a new supply van on January 1, 2011, for $35,000. The van is estimated to last for five years and will then be sold, at which time it should be worth approximately $5,000. The company uses ...Southeast Pest Control, Inc., was started when its owners invested $20,000 in the business in exchange for common stock on January 1, 2011. The cash received by the company was immediately used to purchase a $15,000 ...The Muzby Pet Grooming Company purchased a computer on December 31, 2012, and gave a four-month, 7% note with a face value of $6,000. On maturity, April 30, 2013, the note plus interest will be paid to the bank. Fill in the ...Eric’s Coffee Shop began the year with $12,000 prepaid insurance. During the year, Eric’s prepaid $75,000 in additional insurance premiums. According to the income statement, the company’s insurance expense for the ...Charlotte Motorcycle Repair Corporation purchased a machine on January 1, 2010, for $8,000 cash. The firm expects to use the machine for four years and thinks it will be worthless at the end of the four-year period. The ...
Post your question