Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A review of the ledger of Crane Corporation at its year end, July 3 1 , 2 0 2 4 , produces the following unadjusted

A review of the ledger of Crane Corporation at its year end, July 31,2024, produces the following unadjusted data for the preparation of annual adjusting entries:
Prepaid Insurance, July 31,2024, unadjusted balance, $9,680 : The company purchased an insurance policy on December 1,2022, with a two-year term, which expires November 30,2024.
Buildings, July 31,2024, unadjusted balance, $275,400 : The company owns a building purchased on September 1,2017, for $275,400, with an estimated 30-year useful life. The company uses straight-line depreciation.
Deferred Revenue, July 31,2024, unadjusted balance, $46,750 : The selling price of a digital magazine subscription is $60 for .24 monthly issues delivered over a two-year period. The company had sold 1,100 subscriptions on January 1,2023, during a special promotion.
Salaries Payable, July 31,2024, unadjusted balance, $0 : There are nine salaried employees. Salaries are paid every Monda for the previous five-day workweek (Monday to Friday).6 employees receive a salary of $590 each per week, and 3 employees earn $760 each per week. July 31 is a Wednesday.
(a1) How much insurance expires per month for the building?
Insurance expires per month $
(a3) What was the original purchase price of the policy on December 1,2022?
Original purchase price of the policy $
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Intermediate Accounting

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

10th Canadian Edition, Volume 1

978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736

Students also viewed these Accounting questions

Question

How is vacation and sick time accrued?

Answered: 1 week ago