BUSINESS COLLEGE

On July 1, Morris Company paid $17,400 for two years of insurance in advance. Morris debited Prepaid Insurance. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on?

Answers

Answer 1
Answer:

Answer:

The effect shall be an understatement of expenses and overstatement of net income. The impact shall be $ 4,350.  

Explanation:

The expired portion of prepaid insurance i.e 6 months from July 01 to year end needs to be adjusted. The adjustment amount shall be $ 4,350. calculated as under:

Prepaid Insurance $ 17,400

Period of benefit 24 months.

Adjustment for prepayment : 17400/24*6 = $ 4,350

The effect of not passing the entry would be an understatement of expenses and overstatement of net income


Related Questions

MIDDLE SCHOOL

Industries that are viewed as specialty (instead of a commodity) have a high level of rivalry?

Answers

Answer:

Specialty goods are the products which require high efforts in purchasing because their cost is certainly high, consumers cant take a risk of buying them frequently, like sporting cars, high end cameras, luxury high end clothing etc. There are many industries in specialty goods in which you can see intense level of rivalry. For example, in sporting cars, you have multiple brands which have very severe kind of rivalry like Jaguar and BMW - Lexus and Lotus, they not compete in cars but they compete in their advertisements, evenest as well.

Whereas, when you consider, photographic camera industry, you will also find intense kind of rivalry between Canon and Sony, Leica and Olympus. Here they not only face direct competition from other camera brands, but they also have to face competition from the cell phone industry, which also provide high end cameras in their cell phones like iPhone, Samsung and Oppo etc.

HIGH SCHOOL

Currently in the united states, _____ of adults are overweight. one-half three-quarters one-third two-thirds

Answers

Currently in the United States, TWO-THIRDS of adults are overweight.
Over-weight and obesity is an increasing problem in the developed and developing countries. Overweight and obesity are two different medical terms. In the United States the adult obese are more in numbers than adults that are overweight.

Answer: TWO-THIRD
HIGH SCHOOL

Horizontal integration differs from vertical integration in that it a. combines different businesses involved in all phases of a product’s development.
b. merges stocks from multiple businesses into a new organization.
c. consolidates many firms involved in the same business into one giant company.
d. requires investment from a number of people who share ownership in the firm.

Answers

Answer:

The correct answer is the option C: consolidates many firms involved in the same business into one giant company.

Explanation:

Horizontal integration, is the name given in the field of microeconomics and strategic management, to the term that refers to a strategic technique done by many companies whose process has the main purpose of increasing its production of goods at the same part of the supply chain via acquisition or merger. In addition, this type of technique could cause monopoly.  

Horizontal integration differs from vertical integration in that it consolidates many firms involved in the same business into one giant company (C). Horizontal integration occurs when one company purchases similar companies doing the same things at the same level of production to gain a greater share of the market for that level of production. 
HIGH SCHOOL

Businesses use productivity suites in order to ________. a. Be on the cutting edge of technology b. Justify spending money on capital improvement c. Increase the ability of their employees to do work d. Assess the needs of their workers

Answers

Answer:

its C

Explanation:

i taking test on stuff like this

Answer:

c. increase the ability of their employees to do work

Explanation:

got it right on test

HIGH SCHOOL

Insurance companies will usually only insure against which type of risk? economic risk
investment risk
speculate risk
pure risk

Answers

Insurance companies will usually only insure pure risk. Pure risk is the risk or the possibility of a loss. Insurance company would shoulder the expenses of the insured person or entity whenever there is a loss. They would only be willing to shoulder the possible loss of a person or entity out of pure risk. 

D.  Pure risk........

HIGH SCHOOL

Microsoft hires marketing and sales specialists to decide what prices it should set for its products, whereas a wealthy corn farmer in iowa, who sells his output in the world commodity market, does not. why is this so

Answers

The answer is "because Microsoft could conceivably lose deals in the event that it sets costs unpredictably".
 
Microsoft Corporation shortened as MS, and it refers to an American multinational innovation or technology organization with home office in Redmond, Washington. It creates, makes, licenses, backings and offers PC programming, shopper hardware, PCs, and administrations. Its best known programming items are the Microsoft Windows line of working frameworks, the Microsoft Office suite, and the Internet Explorer and Edge web programs.
COLLEGE

Stephen runs a pet salon. He is currently grooming 130130 dogs per week. If instead of grooming 130130 ​dogs, he grooms 131131 ​dogs, he will add ​$65.8265.82 to his costs and ​$68.1268.12 to his revenues. What will be the effect on his profits of grooming 131131 dogs instead of 130130 ​dogs?

Answers

Answer:

Profit will increase by $2.3

Explanation:

Data provided in the question:

If instead of grooming 130130 ​dogs, he grooms 131131 ​dogs

Marginal cost = $65.82

Marginal revenue = $68.12

Now,

The effect on his profits of grooming 131 dogs instead of 130 ​dogs will be:

Change in profit = Marginal revenue - Marginal cost

or

Change in profit = $68.12 - $65.82

or

Change in profit = $2.3

Hence,

Profit will increase by $2.3

HIGH SCHOOL

Jonathan just graduated college and can expect monthly loan payments of $405. His new job provides him with an annual salary of $36,000. What is his debt‐to‐income ratio? What is the acceptable debt‐to‐

income range for student loans and does Jonathan’s fall within that range?

Answers

36000/12=3000

so 3000 a month he makes.

3000-405=2,595

405x12= 4860

Jonathan just graduated college and can expect monthly loan payments of $405. His new job provides him with an annual salary of $36,000. What is his debt‐to‐income ratio?

If Jonathan's monthly loan payment is $405 that that's is only debt, solve to find his monthly income first.

$36,000/12 = $3,000 Jonathan's debt to income ratio is $405 (debt)/ $3,000 (income).

The debt to income ratio is solved by dividing your monthly expenses by your monthly income $405/$3,000 = 7.41% is Jonathan's debt to income.

What is the acceptable debt‐to‐income range for student loans and does Jonathan’s fall within that range? This seems like a fairly low debt to income ratio for students loans because it only takes up a small percentage of Jonathan's monthly income.

HIGH SCHOOL

Fleming corp. provided services on account. the transaction would be recorded with a credit to:

Answers

Fleming corp. provided services on account. The transaction would be recorded with a credit to SERVICE REVENUE.

What is Service Revenue ?
  • Service revenue is the income a company generates from providing a service.
  • The amount is displayed at the top of an income statement and is added to the revenue from product earnings to show a company's total revenue during a specific time period.
Why Revenues are Credited ?
  • Revenues cause owner's equity to increase.
  • Since the normal balance for owner's equity is a credit balance, revenues must be recorded as a credit.
  • At the end of the accounting year, the credit balances in the revenue accounts will be closed and transferred to the owner's capital account, thereby increasing owner's equity.
  • It may be helpful to think of the accounting equation.
  • Assets = Liabilities + Owner's Equity

Learn more about Service Revenue here:

brainly.com/question/14055175

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Fleming corp. provided services on account. The transaction would be recorded with a credit to service revenue. The transaction will also be recorded on the accounts receivable ledger as well.  Service revenue is an account used in accrual accounting that reports fee income that a company earns during a specific time frame. Accounts receivable is an account that shoes money that is owed to a company by its debtors.

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