What is her adjusting entry

Assignment Help Accounting Basics

Reference no: EM133657827

Question

Sally's Alterations rents a building in the city of Toledo to provide top-notch services to customers. Sally pays rental insurance to protect against loss or damage to her inventory. She pays a yearly premium of $600 for her insurance policy. Sally paid the insurance amount, $600, for the full year on February 1 , which will be renewed on February 1 next year. On December 31, Sally needs to make an entry on the amount of insurance she used during the current year. Since she purchased the insurance on February 1, she didn't have the policy for a full year. She only needs to record the use of 11 months of the policy. To correct this, she'll need to record the expense of the insurance for 11 months only. When Sally purchased the insurance, she recorded the purchase transaction. To record the original purchase, she debited prepaid insurance and credited cash. What is her adjusting entry?

Reference no: EM133657827

Questions Cloud

What are the steps in accessing the ill or injured person : What are the steps in accessing the ill or injured person? Identify the steps for a responsive and unresponsive person.

Describe your go-to meal from any restaurant : Describe your go-to meal from any restaurant that you regularly go to.

Auditing scandals is any specific scandal : In regards to auditing scandals is there any specific scandal that sticks out in your mind. What makes that scandal noteworthy in your mind?

Treat the cost as an asset or expense : When a firm incurs costs on an item to be used in operations, management must decide whether to treat the cost as an asset or an expense.

What is her adjusting entry : Sally's Alterations rents a building in the city of Toledo to provide top-notch services to customers. What is her adjusting entry?

Company plans to enter the german market : A Swiss based company plans to enter the German market. Which of the above is more helpful for the purposes of the assistant?

Buckeye trampoline shop produces one size of trampolines : The Buckeye Trampoline Shop produces one size of trampolines. Every employee works an average of 150 hours per month.

Journalize the? partnership receipt of assets : Journalize the? partnership's receipt of assets and liabilities from Knoll and from Wayne.

Managerial accounting records : Panguitch Company is closing its managerial accounting records for the year. During the year, manufacturing overhead has been UNDER-applied.

User Account

All Pages