Financial Statement Impact

On December 1, 2014 Golden Acres purchased hazard insurance. On December 31, 2014 an adjusting entry is required to journalize the insurance used in December. Two sliders are provided to evaluate the financial statement impact of changes in the amount and term of the insurance. The slider impact is shown first on a timeline, and then in the T-accounts of the accounting equation.

Answer the following questions using the sliders, the dynamic timeline, and the T-accounts. If an answer is zero, enter "0".

1.	If the amount of prepaid insurance is $1,200 and the term is 24 months, the amount of the adjusting entry on Dec. 31, 2014 is $. ?

2.	If the amount of prepaid insurance is $4,800 and the term is 6 months, the amount of the adjusting entry on Dec. 31, 2014 is $. ?

3.	If the term of the prepaid insurance increases and the amount remains the same, the amount of the adjusting entry for Dec. 31, 2014 - Decrease , stays the same or increases

4.	If the amount of prepaid insurance increases and the term remains the same, the amount of the adjusting entry for Dec. 31, 2014 - Select your answer -Decrease , stays the same or increases

5.	If the amount of prepaid insurance is $3,600 and the term is 24 months, the Prepaid Insurance balance on Dec. 31, 2014 is $. ?

6.	If the amount of prepaid insurance is $2,400 and the term is 18 months, the Prepaid Insurance balance on May 31, 2016 is $ ?