Homework 4 - ACCT 2121 - Dhruv Patel
.pdf
School
Mount Royal University**We aren't endorsed by this school
Course
ACCT 2121
Subject
Accounting
Date
Dec 16, 2024
Pages
2
Uploaded by AmbassadorFogCheetah27
A) 1. Bere Ltd:1-Jun-24Dr. Insurance Policy $6,000Cr. Cash$6,0002. Safety Insurance Corp: 1-Jun-24Dr. Cash$6,000Cr. Insurance Policy$6,000B) Calculation of insurance expired during 2024 and unexpired cost at Dec.31Monthly insurance = $6000/12 = $500 per monthJune 1to December 31 = 7 monthsInsurance expense = 7 * $500 = $3500Unexpired insurance cost = Total insurance cost - Insurance expense = $6000 - $3500 = $2500C) Adjusted Entries1. Bere Ltd:Dr. Insurance expense$3,500Cr. Paid Insurance$3,5002. Safety Insurance Corp: Dr. Insurance Policy$3,500Cr. Insurance Rev.$3,500D) Adjusted Balance1. Bere Ltd:Before AdjustmentPaid Insurance$6,000After AdjustmentPaid Insurance$2,5002. Safety Insurance Corp:Before AdjustmentInsurance Rev.$6,000After AdjustmentInsurance Rev. $2,500
A) Salary payments on Sept. 25Classic Auto Repairs Ltd:Dr. Salaries$5,000Cr. Cash$5,000B) Adjustment to accure salaries on Sept. 30Classic Auto Repairs Ltd:Dr. Salaries$4,000Cr. Accounts Payable$4,000C) Salary Payments on Oct. 2Classic Auto Repairs Ltd: Dr. Accounts Payable$4,000Cr. Cash$4,000