Stud Muffin Bakery prepares financial statements on an annual basis and has a December 31, 2023 year-end.
Question:
Stud Muffin Bakery prepares financial statements on an annual basis and has a December 31, 2023 year-end. On July 1, 2023, the bakery purchased a one-year insurance policy for $12,000 cash. The insurance policy covers July 1, 2023 to June 30, 2024.
a. How much does the insurance policy cost per month?
b. How many months are between July 1, 2023 and December 31, 2023?
c. Record the journal entry on July 1, 2023.
d. In order to prepare the annual financial statements, record the adjusting journal entry on December 31, 2023.
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a 1000 12000 12 months b 6 months Date 2023 Jul 1 Prepaid In...View the full answer
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Related Book For 
Fundamental Accounting Principles Volume 1
ISBN: 9781260881325
17th Canadian Edition
Authors: Kermit D. Larson, Heidi Dieckmann, John Harris
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