On December 1, XYZ Insurance Co. received $2,400 from your company for the annual insurance premium covering the twelve-month period beginning on December 1. XYZ Insurance Co. recorded the $2,400 receipt as of December 1 with a debit to the current asset Cash and a credit to the current liability Unearned Revenues. XYZ Insurance Co. prepares monthly financial statements at the end of each calendar month. The following questions pertain to the adjusting entry that should be written by the XYZ Insurance Co. 

48.What date should be used to record the December adjusting entry?

49.How many accounts are involved in the adjusting entry?

50.What is the name of the account that will be debited?

51.What is the name of the account that will be credited?

52.What is the amount of the debit and the credit?

53.What would be the effect on the financial statements if the company fails to make the adjusting entry on December 31?

On December 1, your company began operations. On December 3, it purchased $1,500 of supplies on credit and recorded the transaction with a debit to the current asset Supplies and a credit to the current liability Accounts Payable. Your company prepares monthly financial statements at the end of each calendar month. At the end of the day on December 31, your company estimated that $700 of the supplies were still on hand in the supply room. The following questions pertain to the adjusting entry that should be entered by your company. 

54.What date should be used to record the December adjusting entry?

55.How many accounts are involved in the adjusting entry?

56.What is the name of the account that will be debited?

 57.What is the name of the account that will be credited?

58.What is the amount of the debit and the credit?

59.What would be the effect on the financial statements if the company fails to make the adjusting entry on December 31?

On December 1, your company began operations. On December 4, it purchased $1,500 of supplies on credit and recorded the transaction with a debit to the income statement account Supplies Expense and a credit to the current liability Accounts Payable. Your company prepares monthly financial statements at the end of each calendar month. At the end of the day on December 31, your company estimated that $700 of the supplies were still on hand in the supply room. The following questions pertain to the adjusting entry that should be entered by your company. 

60.What date should be used to record the December adjusting entry?

61.

How many accounts are involved in the adjusting entry?

62.

What is the name of the account that will be debited?

63.

What is the name of the account that will be credited?

64.

What is the amount of the debit and the credit?

65.

What would be the effect on the financial statements if the company fails to make the adjusting entry on December 31?

Answer rating: 100% (QA)

48 December 31 49 Two 50unearned revenue a balance sheet account 51service revenue an income stateme... View the full answer