Yummy Foods purchased a one-year hazard insurance policy on August 1 and recorded the $4,200 premium to prepaid insurance. At its December 31 year-end, Yummy Foods would record which of the following adjusting entries?
A) Debit Insurance Expense and credit Prepaid Insurance for $1,750.
B) Debit Prepaid Insurance and credit Insurance Expense for $1,750.
C) Debit Insurance Expense and credit Accounts Payable for $4,200.
D) Debit Insurance Expense and credit Prepaid Insurance for $2,450.
Answer: A
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Accounting
- When treasury stock is sold for more than the company originally paid to purchase the shares, the difference:
- A company currently has 200,000 shares issued and 190,000 shares outstanding. If the company purchases 20,000 shares of treasury stock, what amount of shares will be outstanding?
- The purchase of treasury stock can boost earnings per share by:
- Why would a corporation purchase its own stock?
- The corporation's own stock that has been issued and then bought back by the company is referred to as:
- What would be the impact on the accounting equation when a company acquires treasury stock?
- Which of the following is TRUE regarding the accounting for treasury stock?
- Which of the following statements about treasury stock transactions is true?
- When an investment is made in another corporation's common stock, what is the effect on total stockholders' equity?
- When treasury stock is acquired, what is the effect on total stockholders' equity?
- When treasury stock is resold at a price above cost:
- A company issued 1,000 shares of $1 par value preferred stock for $5 per share. What is true about the journal entry to record the issuance?
- Which of the following is not a potential feature of preferred stock?
- Which of the following financing alternatives has the highest preference for dividends/interest payments?
- Which of the following is the most likely to have voting rights?
- Which of the following has the lowest expected return to the investor?
- Which of the following has the highest expected return to the investor?
- Preferred stock:
- Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share. The entry to record the issuance will not include a:
- South Beach Apparel issued 10,000 shares of $1 par value stock for $5 per share. What is true about the journal entry to record the issuance?
- Jade Jewelers issued 15,000 shares of $1 par value stock for $20 per share. What is true about the journal entry to record the issuance?
- Wright Inc. issued 20,000 shares of $1 par value common stock for $80,000. The journal entry to record this issuance includes a:
- When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:
- When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:
- If a company issues 1,000 shares of $1 par value common stock for $20 per share, which of the following accounts would be credited?
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