Hi , Can you please help me to correct this please . i did send this question already and was answered wrong by an expert . Thanks in advance

Show transcribed data

Expert Answer

This solution was written by a subject matter expert. It's designed to help students like you learn core concepts.

Step-by-step

1st step

All steps

Answer only

Step 1/1

The correct entry for transaction 13 as of December 13 is given below:-

DateAccountDrCr Prepaid Insurance$2,300 Insurance Expense$100 Cash $2,400 To record insurance expenses and prepaid insurance

Explanation:

As the Insurance policy was purchased for 24 months for $2400 as on December 1st, so only insurance expense for one month to be booked in books and remaining to be transferred as Prepaid Insurance as Assets.

This problem is based on the transactions for the FastForward Company in your text. Prepare journal entries for each transaction and identify the financial statement impact of each entry. The financial statements are automatically generated based on the journal entries recorded. December 1 On December 1, Chas Taylor forms a consulting business, named FastForward. FastForward receives $30,000 cash from Chas Taylor as an owner contribution. December 2 FastForward pays $2,500 cash for supplies. The company's policy is to record all prepaid expenses in asset accounts. December 3 FastForward pays $26,000 cash for equipment. December 4 FastForward purchases $7,100 of supplies on credit from a supplier, CalTech Supply. December 5 FastForward provides consulting services and immediately collects $4,200 cash. December 6 FastForward pays $1,000 cash for December rent. December 7 FastForward pays $700 cash for employee salary. December 8 FastForward provides consulting services of $1,600 and rents its test facilities for $300. The customer is billed $1,900 for these services. December 9 FastForward receives $1,900 cash from the client billed on December 8 . December 10 FastForward pays CalTech Supply $900 cash as partial payment for its December 4$7,100 purchase of supplies. December 11 Chas Taylor withdraws $200 cash from FastForward for personal use. December 12 FastForward receives $3,000 cash in advance of providing consulting services to a customer. The company's policy is to record fees collected in advance in a balance sheet account. December 13 FastForward pays $2,400 cash (insurance premium) for a 24-month insurance policy. Coverage begins on December 1 . The company's policy is to record all prepaid expenses in a balance sheet account. December 14 FastForward pays $120 cash for supplies. December 15 FastForward pays $305 cash for December utilities expense. December 16 FastForward pays $700 cash in employee salary for work performed in the latter part of December. Answer is not complete. Every journal entry must keep the accounting equation in balance. Prepare the journal entries for each of the ransactions of the FastForward Company, entering the debits before the credits. Each transaction will automat be posted to the General Ledger and the Trial Balance as soon as you click "Record Entry