Instre Accounting Equation Accounting Journal Accounting Ledger Accounting Equation f. -On August 1, 2010, the company purchased a six-month insurance policy for $3,600 cash (debited to Prepaid Insurance at that time). An adjustment is needed for the year ended December 31, 2010. Assets Liabilities Equity Prepaid Insurance -3,000 Insurance Expense -3,000 %3D Show me how to do this step: Some of the 6-month insurance policy was used up during this accounting period, so we must adjust accordingly. Ask a Question Analyzing the Event O What is the purpose.of adjusting entries? How did this affect the company's assets? Did this cause liabilities or equity to change? O How did you get $3,000 as the amount to adjust? How do you check if this transaction kept the accounting equation in balance? Is this an adjustment for an accrued expense or a deferred expense? Potential Misconceptions Does recording an expense always mean assets are reduced?

Instre Accounting Equation Accounting Journal Accounting Ledger Accounting Equation f. -On August 1, 2010, the company purchased a six-month insurance policy for $3,600 cash (debited to Prepaid Insurance at that time). An adjustment is needed for the year ended December 31, 2010. Assets Liabilities Equity Prepaid Insurance -3,000 Insurance Expense -3,000 %3D Show me how to do this step: Some of the 6-month insurance policy was used up during this accounting period, so we must adjust accordingly. Ask a Question Analyzing the Event O What is the purpose.of adjusting entries? How did this affect the company's assets? Did this cause liabilities or equity to change? O How did you get $3,000 as the amount to adjust? How do you check if this transaction kept the accounting equation in balance? Is this an adjustment for an accrued expense or a deferred expense? Potential Misconceptions Does recording an expense always mean assets are reduced?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.10E

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Pachel corpolatian re Ports the per teining vecevicable Days Past Due 3-60 followinginfamethon to iti accounts cuNent 1-30 ever90 $2500 1200. $2000 Jhe companys cradit depaltment Plovided the following statement estima ter vegarding the pocent of occounts enfc ted to eventuallyy be writtenoff form. each category current veceveiNable receivables -30 days past due listed aboue aut standing rELENables 31-ho days past due 16 feceivables 6L-G0 days Pajt due receivable Cuer 20 days due. 90 Recold the company's uncollectible account afsuming it hal expense fredit balance for in its llawance Deuhtful accounts pror to the necessaty maling endjustment.
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