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6. The post-closing trial balance of BGJ Company for the month of June 2021 showed a balance of $2,000 for Prepaid Insurance. On March 1,
6. The post-closing trial balance of BGJ Company for the month of June 2021 showed a balance of $2,000 for Prepaid Insurance. On March 1, 2021 BGJ Company made cash payment for a one year insurance policy. This was the only policy in force on July 8, 2021. Show work to determine the following. If an amount is zero, explain why c. The amount of insurance expense to be reported in July, 2021. d. The amount of prepaid insurance to be reported in July, 2021. 2. ABC Company operates on January 1 to December 31 acocunting period. On October 31st, 2021, ABC Co. signed a 90-day, 10% note in exchange for cash from CDG Bank. Show work to determine the following. If an amount is zero, explain why. a. The amount of interest expense to be reported on December 31, 2021. b. The amount interest payable to be reported on December 31, 2021
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