Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Sep 2017 My Price 5.00

Callaway prepays insurance

  1. Details of Prepaid Insurance are shown in the account:
 

Prepaid Insurance

  

Jan. 1

  

400

Mar. 31

  

3,600

Callaway prepays insurance on March 31 each year. At December 31, $600 is still prepaid.

b. Callaway pays employees each Friday. The amount of the weekly payroll is $6,000 for a 5-day work week. The current accounting period ends on Wednesday.

c. Callaway has a note receivable. During the current year, Callaway has earned accrued interest revenue of $500 that it will collect next year.

d. The beginning balance of supplies was $2,600. During the year, Callaway purchased supplies costing $6,100, and at December 31 supplies on hand total $2,100.

e. Callaway is providing services for Manatee Investments, and the owner of Manatee paid Callaway $12,000 as the annual service fee. Callaway recorded this amount as Unearned Service Revenue. Callaway estimates that it has earned one-third of the total fee during the current year.

f. Depreciation for the current year includes Office Furniture, $1,000 and Equipment, $2,700. Make a compound entry.

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Sep 2017 03:09 PM My Price 5.00

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