Working backward-prepaid insurance

Assignment Help Accounting Basics
Reference no: EM13954181

Working Backward: Prepaid Insurance

On December 31, 2014, Baxter Company reported $8,000 in prepaid insurance on its balance sheet. The insurer requires Baxter to pay the annual premium of $24,000 in advance.

Required

1. How much will Baxter recognize each month in insurance expense?

2. On what date does Baxter renew its insurance policy? Explain your answer.

Reference no: EM13954181

Questions Cloud

Prepaid insurance-annual adjustments : On April 1, 2014, Briggs Corp. purchases a 24-month property insurance policy for $72,000. The policy is effective immediately. Assume that Briggs prepares adjusting entries only once a year, on December 31.
Identify and describe at least three initiatives : Identify and describe at least three initiatives that have been taken by the Office of the National Coordinator to promote the nationwide exchange of health data. How will these initiatives contribute to improved quality, safety, and efficiency o..
Problem regarding the working backward-depreciation : Polk Corp. purchased new store fixtures for $55,000 on January 31, 2012. Polk depreciates assets using the straight-line method and estimated a salvage value for the machine of $5,000. On its December 31, 2014, balance sheet, Polk reported the fol..
Which statement best describes a compound : Which of the following would be considered a physical property? Which statement best describes a compound?
Working backward-prepaid insurance : On December 31, 2014, Baxter Company reported $8,000 in prepaid insurance on its balance sheet. The insurer requires Baxter to pay the annual premium of $24,000 in advance.
Essential that organizational leaders understand : It is essential that organizational leaders understand the competitive, financial, and strategic advantages that can result from not only implementing self-managed virtual teams, but also ensuring that they are effective, high-performing groups.
Evaluate the factors that led to decolonization : Evaluate the factors that led to decolonization following World War II. Discuss at least one specific example of each of the following: negotiated transitions, civil wars, or incomplete decolonization.
Income statement and the statement of cash flows : On January 1, Campus Internet Connection opened for business across the street from Upper Eastern University. The company charges students a monthly fee of $20 and $1 for each hour they are online. During January, 500 students signed up for the se..
What was the volatility of the dividend yield : What was the volatility of the dividend yield? What was the average annual return of the SP500 from 2002-2011 excluding dividends (i.e., from capital gains only)?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  B corp has an employee benefit plan for compensated

b corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid

  The management of horton company estimates that credit

the management of horton company estimates that credit sales for august september october and november will be 270000

  Phillip computes his cost recovery allowance using macrs he

use the following information to complete phillip and claire dunphys 2012 federal income tax return. if information is

  Many companies outsource their payroll operations each

many companies outsource their payroll operations each having its own business reasons for doing so. smaller companies

  Using alternate valuation date

Ted died on May 3. At the time of his death, he owned a beach house valued at $250,000. On June 10, the beach house was completely destroyed by a hurricane and there was no insurance coverage. If the executor elects to use the alternate valuation ..

  Determination of taxable gifts in the current year beth

determination of taxable gifts. in the current year beth who is single sells stock valued at 40000 to linda for 18000.

  Effective rate of interest

A certificate of deposit has an annual rate of 6% compounded quarterly. Find the effective rate of interest. Show all work

  The tyus company has provided the following data for the

the tyus company has provided the following data for the month of july raw materials july 1 15000 july 31 ? work in

  Identify the biological factors that influence sensation

Identify the biological factors that influence sensation and perception

  Ingrid are equal partners in the ghi partnership

George, Harriet and Ingrid are equal Partners in the GHI Partnership. George's Adjusted Basis (AB) in his Partnership Interest is $40,000, Harriet's is $60,000 and Ingrid's is $20,000. The Partnership distributes property to George which has ..

  In 2010 natural selection a nationwide computer dating

in 2010 natural selection a nationwide computer dating service had 500 million of assets and 200 million of

  Auditor judgment or of a risk matrix

Use of auditor judgment or of a risk matrix is necessary in revising planned detection risk whenever

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd