Answer: $0
Explanation:
A deferred income tax is simply referred to as the liability that's being recorded in the balance sheet when there's a difference in the income that's recognized by the company and the tax laws.
First, we should note that the premium on officer's life insurance will make no difference to the taxable income. Also, the interest received on municipal bonds which is $20,000 are usually exempted from the federal income tax and should not be taxable as well.
Therefore, based on the above explanation, Lake should report a deferred income tax liability of $0.
The multiplier effect occurs when an initial increase (or decrease) in autonomous expenditure produces a greater increase (or decrease) in real GDP than the initial change. In which type of discretionary fiscal policy does the multiplier play a role? tax changes only neither government spending changes nor tax changes government spending changes only both government spending changes and tax changes Assume a marginal propensity to consume (MPC) of 0.5. Which discretionary fiscal policy would have a more pronounced impact on the economy? A 800 billion dollar increase in government spending, or a 800 billion dollar tax cut, would both have an equal impact on the economy. A 800 billion dollar increase in government spending would have a more pronounced impact on the economy. A 800 billion dollar tax cut would have a more pronounced impact on the economy.
Answer:
The answer is "Choice d and Choice b".
Explanation:
In question 1:
The multiplier effect is produced whenever an initial rise (or decrease) of self-employed market capitalization (or decreases) GDP Growth higher than the original change. Where both increases in public spending or adjustments in taxes are produced by a budgetary monetary strategy, a multiplier mostly on the economy plays a major role in public spending and new taxes.
In question 2:
This marginal demand risk of 0.5 would have a more noticeable influence on financial spending, via an 800 billion dollar increase in government expenditure. This will have more major economic effects on fiscal policy. More noticeable effects of increased spending will have on the aggregate throughout the economy.
The use of government budget funding policies to impact economic factors, particularly macroeconomic variables such as aggregate consumer spending, employment, inflation, and economic growth, is referred to as fiscal policy.
How is a fiscal policy that is discretionarily chosen?The multiplier impact occurs anytime an initial increase (or drop) in self-employed market capitalization (or reduces) GDP Growth that is greater than the original change.
When a fiscal monetary strategy produces both increases in public expenditure and tax adjustments, a multiplier based primarily on the economy plays a significant role in both public spending and new taxes.
This marginal demand risk of 0.5 would have a greater impact on financial expenditures, resulting in an 800 billion dollar rise in government spending.
This will have a greater impact on budgetary policy. The aggregate consequences of higher expenditure will be more visible throughout the economy.
Thus, Options B and D are correct.
For more information about discretionary fiscal policy refer to the link:
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Matching. A shopper is in the grocery store, trying to decide whether to buy apples of a particular variety. Identify the food product attribute that most closely corresponds to each scenario. A. The shopper sees bruises on the apple. B. The shopper knows the apple variety tends to have a mealy texture. C. The shopper notices the PLU code, indicating the apple is USDA Organic.
Answer:
hi
Explanation:
hi i am new but i realy need this app
A firm' s sales procedure involves preparing sales invoices based on shipping documents; posting the sales amounts to accounts receivable records; and posting quantities billed to the inventory records. Due to control weaknesses in the procedure, certain goods that are shipped may not be reflected in the sales invoices. The exposure from this risk can result in:
Answer: understatement of revenues and receivables and over statement of inventory
Explanation:
Control weakness simply refers to the failure by a company to implement the internal controls. Based on the information given, the exposure from this risk can result in understatement of revenues and receivables and over statement of inventory.
There'll be understatement of revenue and receivables since sales is not recorded while the inventory will be overstated.
Computing Number of Shares
The charter of Vista West Corporation specifies that it is authorized to issue 212,000 shares of common stock. Since the company was incorporated, it has sold a total of 145,000 shares (at $16 per share) to the public. It has bought back a total of 15,000. The par value of the stock is $6. When the stock was bought back from the public, the market price was $23.
Required:
1. Determine the authorized shares.
2. Determine the issued shares.
3. Determine the outstanding shares.
Answer: See explanation
Explanation:
1. Determine the authorized shares.
The authorized share simply refers to the maximum number of shares that can be issued by a particular company. In this case, the authorised share is 212000.
2. Determine the issued shares.
The issued share simply means the shares sold. In this case, the answer is 145000 shares.
3. Determine the outstanding shares.
The outstanding shares will be:
= 145000 - 15000
= 130000
Elizabeth reports the following items for the current year: Nonbusiness capital gains $ 5,000 Nonbusiness capital losses (3,000) Interest income 3,000 Itemized deductions (including a $20,000 casualty loss in a Federal disaster area) (27,000) In calculating Elizabeth's net operating loss and with respect to these amounts only, what amount must be added back to taxable income (loss)
Answer: $2000
Explanation:
In calculating Elizabeth's net operating loss and with respect to these amounts only, the amount that must be added back to taxable income (loss) will be the difference between the nonbusiness capital gains and the nonbusiness capital losses. This will be:
= $5000 - $3000
= $2000
Sunland purchased the license for distribution of a popular consumer product on January 1, 2020, for $158,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Sunland can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2020
Answer:
No amount should be amortized since the license can be renewed indefinitely for successive 5-year terms.
Instead, the license should be tested for impairment annually to determine impairment loss.
Explanation:
An intangible asset that can be used indefinitely is treated like purchased Goodwill. It should never be amortized. Annually, the asset should be tested for impairment. The test is to compare the market value of the license with the book value.
On January 1, Alan King decided to deposit $58,800 in a savings account that will provide funds four years later to send his son to college. The savings account will earn 8% annually. Any interest earned will be added to the fund at year-end (rather than withdrawn). (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required:
Answer:
FV= $79,996.75
Explanation:
Giving the following information:
Initial investment (PV)= $58,800
Interest rate (i)= 8% compounded annually
Number of periods (n)= 4 years
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 58,800*(1.08^4)
FV= $79,996.75
Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is a(n) a. implied warranty. b. express warranty. c. statement of guarantee. d. set of instructions for use. e. labe
Answer:
b. express warranty.
Explanation:
A warranty can be defined as a written promise or guarantee made by a manufacturer, lessor or seller about the identity or quality of goods and services or a property to a purchaser, promising him or her to repair or replace it if necessary within a specified time frame.
An express warranty is typically considered to be an affirmative promise about the quality or characteristics of an item that is being sold to a buyer and as such it is binding and enforceable by law.
Inside the packaging of a new bread machine she purchases, Ginger finds a paper stating, "All our products will be replaced within the first year if they fail to operate correctly. However, consumer misuse or abuse will effectively end this policy." This is an express warranty.
It recognized by the Uniform Commercial Code ("UCC") as explicit, stated promises by a manufacturer.
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,900. During the month, it was assigned the following costs: direct materials, $76,900; direct labor, $24,900; and factory overhead, 70% of direct labor cost. Also, inventory with a cost of $113,500 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is: Group of answer choices $83,461. $196,961. $68,030. $16,630. $112,700.
Answer:
Ending Work in Process $16,630
Explanation:
The computation of the ending balance of the work in process inventory is shown below:
Beginning Work in process $10,900
Add: Manufacturing Costs
Direct Materials $76,900
Direct Labor $24,900
Factory Overhead $17,430 (70% of $24,900)
Less: Cost of goods manufactured ($113,500)
Ending Work in Process $16,630
Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,500 direct labor-hours will be required in August. The variable overhead rate is $1.50 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,410 per month, which includes depreciation of $8,940. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be:
Answer:
Overhead cash disbursement= $102,720
Explanation:
First, we need to allocate variable overhead using the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.5*7,500
Allocated MOH= $11,250
Now, we can calculate the cash disbursement for August. Depreciation is not a cash expense. We should deduct it from fixed costs.
Overhead cash disbursement= 11,250 + 100,410 - 8,940
Overhead cash disbursement= $102,720
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units. Machine time is a scarce resource. During the year, 50,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.5 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year
Answer:
$444,250
Explanation:
Calculation to determine the maximum contribution margin Garrison can achieve during a year
First step is to calculate the Contribution margin per hour
Oxy sonic
Sales $75 $44
Less: variable cost $40 $21
=Contribution margin per unit 35 23
÷Machine hour per unit 4 2.5
=Contribution margin per hour $8.75 $9.2
Ranking 2 1
Second step is to calculate the Hour required for sonic
Hour required for sonic = 6,000*2.5
Hour required for sonic= 15,000 hours
Third step is to calculate the Hour available for oxy
Hour available for oxy = 50,000-15,000
Hour available for oxy = 35,000 hours
Fourth step is to calculate the Production of Oxy
Production of Oxy = 35,000/4
Production of Oxy= 8,750 units
Now let calculate the Maximum contribution margin
Maximum contribution margin = 8,750*35+ 6000*23
Maximum contribution margin =306,250+,138,000
Maximum contribution margin = $444,250
Therefore the maximum contribution margin Garrison can achieve during a year is $444,250
On average, your firm receives 65 checks a day from customers. These checks, on average, are worth $39.90 each and clear the bank in 1.5 days. In addition, your firm disburses 38 checks a day with an average amount of $89.50. These checks clear your bank in 2 days. What is the average amount of the collection float? $2,473.80 $3,401.00 $3,890.25 $5,101.50 $6,802.00
Answer:
$3,890.25
Explanation:
Calculation to determine the average amount of the collection float
Using this formula
Collection float =Average Checks received ×Average checks worth×Bank checks clearing numbers of days
Let plug in the formula
Collection float =65 x $39.90 x 1.5 days
Collection float = $3,890.25
Therefore the average amount of the collection float will be $3,890.25
The amount of money that is earned on a deposit is
Explanation:
principal ...............
Answer:
Interest
Explanation:
interest is the amount that is earned on a deposit
eamish Incorporated, which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 10,700 Variable costs per unit: Direct materials $ 108 Direct labor $ 51 Variable manufacturing overhead $ 7 Variable selling and administrative expense $ 9 Fixed costs: Fixed manufacturing overhead $417,300 Fixed selling and administrative expense $834,600 There were no beginning or ending inventories. The absorption costing unit product cost was:
Answer:
$205 per unit
Explanation:
Calculation to determine what The absorption costing unit product cost was:
Using this formula
Absorption costing unit product cost = Direct material + Direct labour + Variable manufacturing overheads + (Fixed manufacturing overheads / Number of units produced)
Let plug in the formula
Absorption costing unit product cost= $108 + $51 + $7 + ($417,300 / 10,700)
Absorption costing unit product cost=$108 + $51 + $7 + $39
Absorption costing unit product cost= $205 per unit
Therefore The absorption costing unit product cost was:$205 per unit
You are planning to save for retirement over the next 35 years. To do this, you will invest $710 per month in a stock account and $310 per month in a bond account. The return of the stock account is expected to be 9.1 percent, and the bond account will earn 5.1 percent. When you retire, you will combine your money into an account with an annual return of 6.1 percent. Assume the returns are expressed as APRs.
How much can you withdraw each month from your account assuming a 30-year withdrawal period?
Answer:
monthly payment = $16,162.87
Explanation:
future value of stock account = $710 x= [(1 + 0.00758333)⁴²⁰- 1 ] / 0.00758333 = $2,142,045
future value of bond account = $310 x= [(1 + 0.00425)⁴²⁰- 1 ] / 0.00425 = $360,116
future value = $2,502,161
PVIFA = [1 - 1/(1 + 0.0050833)³⁶⁰ ] / 0.0050833 = 165.019
monthly payment = $2,502,161 / 165.019 = $16,162.87
Suppose a firm produces with a technology that exhibits constant returns to scale at all levels of production. The firm's inputs are workers and laptops. The firm sells its output in a perfectly competitive market. It also hires its inputs (hires workers and rents laptops) in perfectly competitive markets. Assume that in the long run the firm produces y units of output using x1 workers and x2 laptops. If the firm doubles the amount of workers and laptops (using 2x1 and 2x2), we would expect the firm's long-run profits to
Answer:
Not change
Explanation:
In the long run we expect firms to earn zero profits. With competitive markets for both inputs and output, and with constant returns to scale, a doubling of all inputs would lead to twice as much output, twice as much revenue, and twice as much cost.
Carol Beal is the export manager at Gudrun Sjoden USA, a licensed distributor for a Swedish designer. Carol has North America and all of Asia in her territory. She has just formed a joint venture to run retail branches in Tokyo, Shanghai, and Seoul. Her plan is to ship directly from the Gudrun Sjoden warehouse in Stockholm. Her Asian partner has requested she ship to her DDP, but Carol would prefer to ship Ex Works. Carol knows that there are critical differences between the two terms of sale and is reviewing what decision to make. She wants to keep her U.S. expenses as low as possible, and she would be funding the shipping out of the United States. She also wants to continue to build a good, solid, trusting relationship with her joint venture partner.
Which statement is true Carol ships goods Ex Works?
a. The buyer would cover shipping and insurance costs assume the risk the door.
b. The seller would cover all insurance costs while the buyer would cover the cost of shipping.
c. The goods be shipped from Stockholm at the seller's expense.
d. The seller would cover all shipping and insurance costs and assume the risk at the factory door.
e. The buyer would cover all insurance costs while the seller would cover the cost of shipping
Answer:
a. The buyer would cover all shipping and insurance costs and assume the risk at the factory door.
Explanation:
According to the given situation the exworks means that the seller fulfill his duty for delivering the goods when the goods are available at his place i.e. works, factory or warehouse to the buyer. Also the buyer would responisble to bear all the cost and the risk involved while taking the goods from the seller place to the final destination
Hence, the option a is correct
Super Saver Groceries purchased store equipment for $43,000. Super Saver estimates that at the end of its 10-year service life, the equipment will be worth $4,000. During the 10-year period, the company expects to use the equipment for a total of 13,000 hours. Super Saver used the equipment for 1,200 hours the first year. Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods. (Do not round your intermediate calculations.)
Answer:
$3900
$8600
$3600
Explanation:
This is the remaining part of the question :
Required: Calculate depreciation expense of the equipment for the first year, using each of the following methods
1. Straight-line.
2.Double Declining Method
3.Activity Based
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
(43,000 - 4000) / 10 = $3900
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/10 = 0.2
Depreciation expense = 0.2 x $43,000 = $8600
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
(1200 / 13,000) x (43,000 - 4000) = $3600
A large brand runs several companies, including a chain of hotels, an automobile business, and a software development firm. Which data warehouse would help the organization view consolidated results of all the businesses?
A.
distributed
B.
LAN based
C.
virtual
D.
multistage
E.
stationary
Answer:
A.
distributed
Explanation:
In the case of the large brand running several companies, the best data warehouse suitable for them would be distributed type. This is because, it would allow them to house their data separately in the different arms of the business like hotels, automobiles business and software development businesses before the information is linked together and distributed evenly.
The distributed data warehouse allows them to share information among the various arms of the businesses due to the linkage between them.
Rainey Company's true cash balance at October 31 is $4,700. The following information is available for the bank reconciliation: Outstanding checks, $740 Deposits in transit, $540 Bank service charges, $110 The bank had collected an account receivable for Rainey Company, $1,200 The bank statement included an NSF check written by one of Ramsey's customers for $720. What was the unadjusted book balance at October 31
Answer: $4330
Explanation:
The unadjusted book balance at October 31 is calculated below:
True cash balance = $4700
Add: Bank service charge = $110
Add: NSF Check = $720
Less: Account receivable = $1200
Unadjusted book balance = $4330
Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 320, 300, 372, 332, and 400 respectively. Budgeted production in units for January, February, and March were 315, 318, and 362 respectively. Each unit requires 3 direct labor hours and Galactic’s hourly labor rate is $16 per hour. The company’s variable overhead is $5.00 per unit produced and its fixed overhead is $5,600 per month..
Required:
a. Determine Galactic's direct labor budget for the first quarter.
b. Determine Galactic's manufacturing overhead budget for the first quarter
Answer:
Direct labor costs= $47,760
total manufacturing overhead= $10,575
Explanation:
Giving the following information:
Production= 315 + 318 + 362= 995 units
Each unit requires 3 direct labor hours.
Hourly rate= $16
Variable overhead per unit= $5
Fixed overhead= $5,600
First, we need to calculate the direct labor hours:
Direct labor hours= 995*3= 2,985
Now, the direct labor costs:
Direct labor costs= $47,760
Finally, the total manufacturing overhead:
total manufacturing overhead= 5,600 + 5*995
total manufacturing overhead= $10,575
Negotiations often involve three types of issues. For ______________ issues, the parties' preferences are directly opposed. For ______________ issues, the parties have directionally-opposed preferences but value the issues differently. For ______________ issues, the parties have the same preferences.
Answer:
1. Distributive issues
2. Integrative issues
3. Congruent issues
Explanation:
Typically, for every negotiation process, any of the three kinds of issues are involved, this includes the following distributive, congruent, and integrative issues.
Hence, Negotiations often involve three types of issues. For DISTRIBUTIVE issues, the parties' preferences are directly opposed. For INTEGRATIVE issues, the parties have directionally-opposed preferences but value the issues differently. For CONGRUENT issues, the parties have the same preferences.
For DISTRIBUTIVE issues, the parties' preferences are directly opposed.
For INTEGRATIVE issues, the parties have directionally-opposed preferences but value the issues differently.
For CONGRUENT issues, the parties have the same preferences.
What is a Negotiation?A Negotiation refers to method through which parties settle their differences and in reaching an agreement.
Generally, for every negotiation process, any of the three kinds of issues are involved, this includes the following distributive, congruent, and integrative issues.
Read more about Negotiation
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Which of the following industries is most likely to outsource jobs to another country because of slight increases in labor costs?
a. Milk dairy.
b. High-tech research facility.
c. Textile plant.
d. Automobile assembly plant.
Which of the following industries is most likely to outsource jobs to another country because of slight increases in labor costs?
a. Milk dairy.
b. High-tech research facility.
c. Textile plant.
d. Automobile assembly plant.
Answer: c. Textile plant.
Hope this helps
Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) 2021 2022 2023 Subscription revenue recognized (earned) $ 350 $ 360 $ 320 Subscription payments received in cash 390 340 360 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation
Answer: Unearned subscription revenue.
Explanation:
Tax is made on a cash basis which means that a transaction is eligible for taxation once cash has been paid for it. Businesses however have to use the Accrual basis which only record transactions in the period that they have been incurred.
In this scenario, there is more subscription payment in cash than the company recognized which means that the company has not yet delivered the service they were paid for and so could not recognize the subscriptions. They will however be taxed on those amounts because the cash has come in.
The account giving this temporary difference is therefore the Unearned Subscription Revenue account.
A new investment project currently under consideration has a negative net present value of $85,000. The project has a life of 10 years and the minimum required rate of return is 8%. The present value factor for an annuity at 8% for 10 periods is 6.71. What is the amount of annual additional cash flow that is required to make this investment attractive
Answer:
$12,668
Explanation:
Calculation to determine the amount of annual additional cash flow that is required to make this investment attractive
Using this formula
Annual additional cash flow required=Negative net present value /Present value factor for an annuity at 8% for 10 periods
Let plug in the formula
Annual additional cash flow required= $85,000/6.71
Annual additional cash flow required= $12,668
Therefore the amount of annual additional cash flow that is required to make this investment attractive is $12,668
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $0.37 a share. The following dividends will be $0.42, $0.57, and $0.87 a share annually for the following three years, respectively. After that, dividends are projected to increase by 2.8 percent per year. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 9 percent?
Answer:
P0 = $11.968577 rounded off to $11.97
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on g is the constant growth rate in dividends r is the discount rate or required rate of return
P0 = 0.37 / (1+0.09) + 0.42 / (1+0.09)^2 + 0.57 / (1+0.09)^3 +
0.87 / (1+0.09)^4 + [(0.87 * (1+0.028) / (0.09 - 0.028)) / (1+0.09)^4]
P0 = $11.968577 rounded off to $11.97
Computing Basic and Diluted Earnings per Share Soliman Corporation began the year 2018 with 25,000 shares of common stock and 5,000 shares of convertible preferred stock outstanding. On May 1, an additional 9,000 shares of common stock were issued. On July 1, 6,000 shares of common stock were acquired for the treasury. On September 1, the 6,000 treasury shares of common stock were reissued. The preferred stock has a $4 per share dividend rate, and each share may be converted into 2 shares of common stock. Soliman Corporation’s 2018 net income is $230,000.
Required
a. Compute earnings per share for 2018. Round your answer to two decimal places.
b. Compute diluted earnings per share for 2018. Round your answer to two decimal places.
Answer:
Soliman Corporation
1. Basic EPS
= $6.18 per share
2. Diluted EPS
= $5.23 per share
Explanation:
a) Data and Calculations:
Convertible Preferred Stock = 5,000 or 10,000 Common Shares
Common Stock:
January 1, 2018 = 25,000
May 1, 2018 Issued 9,000
July 1, 2018 Treasury (6,000)
September 1, 2018 Treasury 6,000
Total outstanding 34,000
Converted preferred stock 10,000
Total outstanding 44,000
2018 Net Income = $230,000
Preferred dividend 20,000 ($4 * 5,000)
Income for Common $210,000
Basic Earnings per share = $210,000/34,000 = $6.18
Diluted Earnings per share = $230,000/44,000 = $5.23
Setting and achieving goals is essential to success.
a. True
b. False
Answer: True
Explanation:
The statement that "Setting and achieving goals is essential to success" is true.
When we set goals, it gives us a motivation for the short term and also a long term vision. Setting goals doesn't allow us to deviate from whatever we want to achieve. Our time and resources are dedicated towards achieving that set goal.
The prepaid insurance account had a balance of $11,300 at the beginning of the year. The account was debited for $12,500 for premiums on policies purchased during the year. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:
a. The amount of unexpired insurance applicable to future periods is $2,100.
b. The amount of insurance expired during the year is $14,400
Answer:
A. Dr Insurance expense $21,700
Cr Prepaid insurance $21,700
B. Dr Insurance expense $14,400
Cr Prepaid insurance $14,400
Explanation:
A. Preparation of the adjusting entry if the
amount of unexpired insurance applicable to future periods is $2,100.
Dr Insurance expense $21,700
Cr Prepaid insurance $21,700
($11,300 + $12,500 - $2,100 = $21,700)
B. Preparation of the adjusting entry if The amount of insurance expired during the year is $14,400
Dr Insurance expense $14,400
Cr Prepaid insurance $14,400
Please Help~!!!!
Name one thing you're afraid of when you think of college and career.