For each separate case below, follow the three-step process for adjusting the prepaid asset account at december 31.
step 1: determine what the current account balance equals.
step 2: determine what the current account balance should equal.
step 3: record the december 31 adjusting entry to get from step 1 to step 2
points
8 0246.25
assume no other adjusting entries are made during the year.
a. prepaid insurance. the prepaid insurance account has a $5,400 debit balance to start the year. a review of
insurance policies shows that $1,250 of unexpired insurance remains at year-end.
ebook
hint
prepaid insurance
references
step 1: determine what the current account balance equals.
step 2: determine what the current account balance should equal.
step 3: record the december 31, adjusting entry to get from step 1 to step 2.
assume no other adjustments entries are made during the year

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances

Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker

Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive