I have an accounting problem that I need help with!?
Question:
a.The company was started when it issued common stock for $8,000 cash.
b.The company purchased land on January 1 that cost $5,800.
c.Northwestern purchased $300 of supplies on account.
d.Northwestern earned $6,200 of revenue on account.
e.Cash collections of receivables were $5,500.
f.On October 1, 2009, Northwestern paid $1,200 in advance for a one-year insurance policy.
Adjusting entry information:
g.Supplies on hand as of December 31, 2009, amounted to $100.
h.Recognized insurance expense.
9.The amount of insurance expense reported on the 2009 income statement would be
a.$300.
b.$900.
c.$1,200.
d.none of the above.
Answer:
A. $300 ( ($1,200 / 12) months X oct, Nov, Dec.)
u most be desparate... haha, i know how u feel buddy
a) $300 (3 months expense Oct - Dec)... assuming that the policy started Oct 1
A. $300 since $1200/12 is $300
Hope it helps!
d none of the above
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