The Post Closing Trial Balance of Salami, Inc as of December 31, 2011 appears below READ EACH DESCRIPTION CAREFULLY and record the transaction for its ending impact for 2012 PRINT CLEARLY and USE COMPLETE Account Titles Account Dr Cr Cash 496,000 Accounts Receivable 499,000 Allowance for Doubtful Accounts 50,000 Prepaid Rent 525,000 Prepaid Insurance 150,000 Inventory 875,000 Furniture and Fixtures 215,000 Accumulated Depreciation 85,000 Accounts Payable 750,000 Wages Payable 80,000 Common Stock 1,200,000 Retained Earnings 595,000 Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Depreciation Expense Utility Expense Bad Debt Expense Insurance Expense Dividends Totals 2,760,000 2,760,000 Purchase of inventory for resale was $5,000,000 All purchases were made on account Payments for inventory purchased on account were $5,210,000 Sales of merchandise totaled $11,200,000 Of this amount, 20 of the sales were made on account the remaining sales were paid in cash The cost of the merchandise sold during the year was $4,000,000 Collections on Accounts Receivable during the year were $2,380,000 Cash payments to employees during the year, totaled $1,215,000 This was both towards unpaid salaries at the beginning of the year and for salaries earned during 2012 Paid $100,000 cash for utilities during the year During the year $56,000 of customer accounts were written off as uncollectible Accrued wages payable at year end should be $75,000 On October 1, 2011, $600,000 was paid for a 24 month operating lease for the building The lease will be expensed evenly over the lease period On June 1, 2011, a check for $360,000 was issued for a one year insurance policy to be expensed evenly over the next 12 months On June 1, 2012 a check for $480,000 was issued for a one year insurance policy The insurance will be expensed evenly over the next 12 months The payment for the policy purchased in 2012 has not been recorded Depreciation expense for the year on the furniture and fixtures is calculated using straight line depreciation The life of the furniture and fixtures is 10 years and the company estimates a residual value of $5,000 The company has determined that the allowance for doubtful accounts should be $40,600 Dividends were declared and paid in the amount of $4,000,000 during the year I need help with journal entry 9 and 14 Please explain the procedure behind as I am trying to learn Also, it seems that the final balance for pre paid insurance (after posting everything to the T accounts) is $200,000, but I am getting that the final balance is 150,000 dr (beginning balance) 480,000 (from journal entry 11) This is how the key gets to that result Prepaid Insurance 150,000 11 150,000 0 11 480,000 480,000 11 280,000 200,000 Am I wrong or is the key answer sheet wrong I do not know why they would credit the 150,000 instead of debiting it, and I also do not know where the 280,000 comes from

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The Post-Closing Trial Balance of Salami, Inc. as of December 31, 2011 appears below: READ EACH DESCRIPTION CAREFULLY and record the transaction for its ending

The Post-Closing Trial Balance of Salami, Inc. as of December 31, 2011 appears below: READ EACH DESCRIPTION CAREFULLY and record the transaction for its ending impact for 2012. PRINT CLEARLY and USE COMPLETE Account Titles.

Account	Dr	Cr.
Cash	496,000
Accounts Receivable	499,000
Allowance for Doubtful Accounts		50,000
Prepaid Rent	525,000
Prepaid Insurance	150,000
Inventory	875,000
Furniture and Fixtures	215,000
Accumulated Depreciation		85,000
Accounts Payable		750,000
Wages Payable		80,000
Common Stock		1,200,000
Retained Earnings		595,000
Sales Revenue
Cost of Goods Sold
Wages Expense
Rent Expense
Depreciation Expense
Utility Expense
Bad Debt Expense
Insurance Expense
Dividends
Totals	2,760,000	2,760,000

Purchase of inventory for resale was $5,000,000. All purchases were made on account.
Payments for inventory purchased on account were $5,210,000.
Sales of merchandise totaled $11,200,000. Of this amount, 20% of the sales were made on account; the remaining sales were paid in cash.
The cost of the merchandise sold during the year was $4,000,000.
Collections on Accounts Receivable during the year were $2,380,000.
Cash payments to employees during the year, totaled $1,215,000. This was both towards unpaid salaries at the beginning of the year and for salaries earned during 2012.
Paid $100,000 cash for utilities during the year.
During the year $56,000 of customer accounts were written off as uncollectible.
Accrued wages payable at year-end should be $75,000.
On October 1, 2011, $600,000 was paid for a 24-month operating lease for the building. The lease will be expensed evenly over the lease period.
On June 1, 2011, a check for $360,000 was issued for a one-year insurance policy to be expensed evenly over the next 12 months. On June 1, 2012 a check for $480,000 was issued for a one-year insurance policy. The insurance will be expensed evenly over the next 12 months. The payment for the policy purchased in 2012 has not been recorded.
Depreciation expense for the year on the furniture and fixtures is calculated using straight line depreciation. The life of the furniture and fixtures is 10 years and the company estimates a residual value of $5,000.
The company has determined that the allowance for doubtful accounts should be $40,600.
Dividends were declared and paid in the amount of $4,000,000 during the year.

I need help with journal entry 9 and 14. Please explain the procedure behind as I am trying to learn.

Also, it seems that the final balance for pre-paid insurance (after posting everything to the T-accounts) is $200,000, but I am getting that the final balance is 150,000 dr (beginning balance) + 480,000 (from journal entry #11). This is how the key gets to that result:

Prepaid Insurance			150,000
11		150,000	0
11	480,000		480,000
11		280,000	200,000

Am I wrong or is the key answer sheet wrong? I do not know why they would credit the 150,000 instead of debiting it, and I also do not know where the 280,000 comes from.