Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

10) Murphy Company prepaid $8400 on October 1, 2018 for a one-year insurance premium. Coverage begins October 1. On January 1, 2019 (after December 31

image text in transcribed
10) Murphy Company prepaid $8400 on October 1, 2018 for a one-year insurance premium. Coverage begins October 1. On January 1, 2019 (after December 31 adjustments), the Prepaid Insurance account will have a debit balance of _ .(Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.) A) $7000 B) $6300 C) $8400 D) $9100 11) A business purchased equipment for $145,000 on January 1, 2019. The equipment will be depreciated over the five years of its estimated useful life using the straight-line depreciation method. The business records depreciation once a year on December 31. Which of the following is the adjusting entry required to record depreciation on the equipment for the year 2019? (Assume the residual value of the acquired equipment to be zero.) A) Debit $29,000 to Depreciation Expense, and credit $29,000 to Equipment. B) Debit $145,000 to Depreciation Expense - Equipment, and credit $145,000 to Accumulated Depreciation-Equipment. C) Debit $29,000 to Depreciation Expense - Equipment, and credit $29,000 to Accumulated Depreciation Equipment. D) Debit $145,000 to Equipment, and credit $145,000 to Cash. 12) On September 1, 2018, Real Estate Professionals Company paid $5000 in advance for an eight-month rental space covering the period of September 1, 2018 through April 30, 2019. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year-end. The adjusting entry on December 31, 2018 would include a A) credit of $2500 to Rent Expense B) debit of $5000 to Cash C) debit of $2500 to Rent Expense D) credit of $5000 to Prepaid Rent 13) Justice Company purchased a machine for $15,000. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine. A) $15,000 B) $16,500 C) $3000 D) $13,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Information Systems A Comprehensive Reference Guide

Authors: Jack J. Champlain

1st Edition

0471168904, 978-0471168904

More Books

Students also viewed these Accounting questions