Give the journal entry to correct scranton''s books , Accounting Basics

On 11/1/05 the Scranton Electric Company issued a check in the amount of $36,000 to the Fly By Night Insurance Company. The amount represented the total premiums on a liability insurance policy for the next three years. The entire $36,000 was recorded as an expense by Scranton when the payment was made. When Scranton's fiscal; year ended on 12/31/05, no additional entries had been made regarding the insurance payment. Explain why Scranton's books are incorrect as of 12/31/05 and give the journal entry to correct Scranton's books at that date.

Posted Date: 3/14/2013 6:28:13 AM | Location : United States







Related Discussions:- Give the journal entry to correct scranton''s books , Assignment Help, Ask Question on Give the journal entry to correct scranton''s books , Get Answer, Expert's Help, Give the journal entry to correct scranton''s books Discussions

Write discussion on Give the journal entry to correct scranton''s books
Your posts are moderated
Related Questions
Below is a table with total data for a firm in a perfectly competitive industry. Quantity Total Cost 0 100 10

Q. Illustrating the recording of sales returns? Following are two instances illustrating the recording of sales returns in the Sales Returns and Allowances account - Suppose

What is the implication of applying accounting concepts wrongly

Q. What is Accrued expenses? Accrued expenses, accruals -- an expense that has been incurred though not yet paid for.Salaries are a good instance. Employees earn or accrue salar

Q. Illustrate unearned service fees? Micro Train reports the service income in its income statement for 2010. The company enters the USD 3000 balance in the Unearned Service Fe

discuss the features of unincoporated associations

Q. Describe about adjunct account? The Transportation-In account files the inward freight costs of acquiring merchandise. Transportation-In is an adjunct account in that it is

Prepare a trial balance All account names would be listed in left-hand column. Place the account balance in appropriate debit or credit column for those accounts which have

"Imagine yourself in a situation of being encouraged to inflate your expense account. Do you think your choice would be most affected by your individual moral development or by the

If partners do not draw up a partnership agreement, the provisions of the Partnership Act apply on which statement is true like a provision of the Partnership Act? A Interest on