Ask Question
BusinessBusiness
18 October, 02:27

J. brown consulting paid $2,500 cash for a 5-month insurance policy which begins on december 1. given the choices below, determine the general journal entry that j. brown consulting will make to record this transaction

+2
Answers (1)
  1. 18 October, 03:01
    0
    The first account to be used is prepaid insurance. This is a current asset which specifies the price of the insurance contract or also known as premiums that have been paid in advance. It signifies the amount that has been paid but has not yet expired as of the balance sheet date.

    The second account to be used is cash because it was used to pay for the insurance bought.

    To record this transaction:

    Debit, Prepaid Insurance $2500

    Credit, Cash $2500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “J. brown consulting paid $2,500 cash for a 5-month insurance policy which begins on december 1. given the choices below, determine the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
On December 31st, end of current year, ABC Company needs to record 4 months of accrued interest on a loan for $10,000 at 5%. The note payable is not due for another 3 months.
Answers (1)
1. Baltimore Company experienced a total increase in stockholders' equity of $27,000 during the current year. Stockholders' equity was increased by additional issuances of $56,000 capital stock during the year. No dividends were paid.
Answers (1)
Describe two examples of debt investments
Answers (1)
You have always thought that learning to play the guitar would be fun. However, this activity would cost money and require time away from other activities. This is an example of ___.
Answers (1)
In what accounts should the following items be classified? (a) Coins and currency. (b) U. S. Treasury (government) bonds. (c) Certificate of deposit (matures in 5 months). (d) Cash in a bank that is in receivership.
Answers (1)
New Questions in Business
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $195,000 and Total Liabilities of $75,000. During the year, the company reported total revenues of $226,000 and expenses of $175,000.
Answers (1)
Company X failed to record (accrue) $5,000,000 of vendor invoices and warranty liability at year-end. With this omission, the company's summary financial statements were stated as follows:Summarized Income StatementSales $50,000,000All Cost (incl.
Answers (1)
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $8,600 (that had cost $6,355) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee.
Answers (1)
G. R. Edwin Inc. had sales of $6.02 million during the past year. The cost of goods sold amounted to $3.06 million. Operating expenses totaled $2.65 million, and interest expense was $27 comma 000.
Answers (1)
During the year, Calabash Clinic made a $50,000 cash payment toward its bank loan, which it had previously recorded; $40,000 was for principal, and $10,000 was to pay the full amount of interest due.
Answers (1)
Home » Business » J. brown consulting paid $2,500 cash for a 5-month insurance policy which begins on december 1. given the choices below, determine the general journal entry that j. brown consulting will make to record this transaction
Sign Up Forgot Password?