ABC Corporation pays $1,800 cash for an insurance policy on December 20, 2019. The policy covers...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Corporation pays $1,800 cash for an insurance policy on December 20, 2019. The policy covers the 12 months from January 2020 through December 2020. 1. Show the journal entry ABC should record on December 20, 2019. 2. Briefly explain whether and how the January 2020 income statement will be affected by this transaction, including any required calculations. For the toolbar. press ALT+F10 (PC) or ALT+FN+F10 (Mac) ABC Corporation pays $1,800 cash for an insurance policy on December 20, 2019. The policy covers the 12 months from January 2020 through December 2020. 1. Show the journal entry ABC should record on December 20, 2019. 2. Briefly explain whether and how the January 2020 income statement will be affected by this transaction, including any required calculations. For the toolbar. press ALT+F10 (PC) or ALT+FN+F10 (Mac)
Expert Answer:
Answer rating: 100% (QA)
1 Date General Journal Debit Credit Dec 20 2019 Prepaid Ins... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
The average funding cost for a company is 5% per annum when the risk-free rate is 3%. The company is currently undertaking projects worth $9 million. It plans to increase its size by undertaking $1...
-
What items are included in compensation cost for a company in addition to the gross salaries of the employees?
-
A computed A will be converted into B in a stirred tank reactor. The product B and unreacted A are purified in a separation unit. Unreacted A is recycled to the rector. A process engineer has found...
-
Westile Company buys plain ceramic tiles and prints different designs on them for souvenir and gift stores. It buys the tiles from a small company in Europe, so at all times it keeps on hand a stock...
-
If cosh x = 5/3 and x > 0, find the values of the other hyperbolic functions at x.
-
Near the state capitol, a heritage center houses historical artifacts of significance to the state dating from pre-statehood to the present. The center is particularly well done and serves as both a...
-
Sample office rental rates (in dollars per square foot per year) for Los Angeles are shown in the table at the left. Use technology to find the mean rental rate and the sample standard deviation.
-
Revenue allocation, bundled products. Yves Parfum Company blends and sells designer fragrances. It has a Men's Fragrances Division and a Women's Fragrances Division, each with different sales...
-
The United World Corporation has three subsidiaries. Sales Net income (after taxes) Assets Computers $20,690,000 2,160,000 21,220,000 Magazines $5,770,000 668,000 8,780,000 Cable TV $4,590,000...
-
Randy Smith was very proud of his new position as inventory control manager for theJohnson Trinket Company. His primary responsibility had been fairly clearly defined: Maintain an inventory level in...
-
Newton's second law is to position x(t) as Schroedinger's equation is to Select one: a. Probability, w*y O b. Momentum, pix.t) O c Wave function, 4(x.t) O d. Potential energy function, V(x.t)
-
List five examples of gender-biased words and their improved versions.
-
Explain the difference between a held-to-maturity financial instrument, available-for-sale financial asset, and financial assets and liabilities held for trading.
-
On September 7, 2005, Biran Limited signed a contract to buy equipment from a U.S. manufacturer. The price of the equipment was US$500,000. On the same date, Biran entered into a forward contract...
-
Which policy verbs authorize groups to interact with resources with the highest level of permission? A. inspect B. read C. administer D. use
-
Sneakers have evolved from being functional footwear to being a fashion staple underpinned by brand loyal consumers and a subculture of #sneakerheads with their own language, rituals, and sneaker...
-
In order to build a report for her manager, Mary needs to access data contained within the company's Oracle database. She would like to use MS Access to create the report presentation, because she's...
-
Prove the following D,(cos x) = - sin x (Hint: Apply the identity cos(A + B) = cos A cos B sin A sin B)
-
Does put-call parity hold when there is default risk? Explain your answer.
-
Suppose that a stock index is currently 900. The dividend yield is 2%, the risk-free rate is 5%, and the volatility is 40%. Use the results in the Technical Note 27 to calculate the value of a...
-
What volatility smile is likely to be observed when (a) Both tails of the stock price distribution are less heavy than those of the lognormal distribution? (b) The right tail is heavier, and the left...
-
Cooling pipes at three nuclear power plants are investigated for deposits that would inhibit the flow of water. From 30 randomly selected spots at each plant, 13 from the first plant, 8 from the...
-
With reference to Exercise 10.57, find a large sample 95% confidence interval for the true difference of the probabilities of failure. Data From Exercise 10.57 10.57 Two bonding agents, A and B, are...
-
Two hundred tires of each of four brands are individually placed in a testing apparatus and run until failure. The results are obtained the results shown in the following table: (a) Use the 0.01...
Study smarter with the SolutionInn App