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Question: a company takes out a two year fire insurance policy...

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A company takes out a two year fire insurance policy costing $21923 on May 1, 20x4. The cost of the policy was debited to the Prepaid Insurance account. At December 31, 20x4, the adjusting entry will include which of the following: Select one: a. A debit to insurance expense of $7308 O b. A credit to prepaid insurance of $12788 OC.A debit to insurance expense of $14615 O d. A credit to prepaid insurance of $6394 Check

The premium on a three-year insurance policy expiring on December 31, 20x11, was paid in total on January 1, 20x9. The original payment was initially debited to a prepaid asset account. The appropriate journal entry has been recorded on December 31, 20x9. The balance in the prepaid asset account on December 31, 20x9 should be Select one: a. The same as the original payment O b. Higher than if the original payment had been debited initially to an expense account C. Zero O d. The same as it would have been if the original payment had been debited initially to an expense account Check

It is December 31, 20x9 and TZ Corporation is making their necessary year-end adjusting entries. Their accountant is unsure how to properly adjust for the following items: Interest incurred on an outstanding loan of $10316 at 12% Interest earned on an outstanding loan of $20603 at 10% . . Select one: O a. A credit to interest expense of $ 1238 O b. A credit to interest revenue of $ 1238 O c. A credit to interest revenue of $ 2060 d. A debit to interest expense of $ 2060 Check

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