Purchase Solution

Adjusting entry for prepaid expense

Not what you're looking for?

Ask Custom Question

On July 1, 2006, Orlow Co. pays $12,000 to Pizner Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Orlow Co., journalize and post the entry on July 1 and the adjusting entry on December 31.

Purchase this Solution
Solution Summary

Solution contains adjusting entry for prepaid expense.

Solution Preview

Hello,

Please see attachment and response provided.

In the books of Orlow Co.
Journal entries
Date ...

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Motivation

This tests some key elements of major motivation theories.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

View More Free Quizzes
Related BrainMass Solutions

  • Adjusting entries

    What accounts does a company debit and credit in a prepaid expense adjusting entry? Debit is insurance expense and Credit is prepaid insurance. In a prepaid adjusting entry we are adjusting for the expired insurance.

  • Adjusting Entries: Prepaid Rent

    The adjusting entry is Rent Expense Dr 25,000 Prepaid Rent Cr 25,000 The solution explains how to prepare the adjusting entry for prepaid rent.

  • Prepaid Rent: Preparing the Adjusting Entry

    For each journal entry write Dr for debit and Cr for credit. DR Rent Expense $1,000 CR Prepaid Rent $1,000. The solution assists in preparing the adjusting entry for the prepaid rent.

  • This post addresses accounting practice questions.

    473527 prepaid expenses, adjusting entries 1. In the case of a prepaid expense, the adjusting entry required at the end of a period consists of a credit to Prepaid expense. True False 2.

  • Orlow Co. pays $12,000 to Pizner Insurance Co.

    Prepare adjusting entry for prepaid expense BE3-6 Using the data in BE3-5, journalize and post the entry on July 1 and the adjusting entry on December 31 for Pizner Insurance Co.

  • Missing adjusting entry

    332508 Adjusting Entry for Prepaid rent Prepaid rent at 1/1/10 was $20,000. During 2010 rent payments of $123,000 were made and charged to "rent expense."

  • Insurance Expense

    The adjusting entry for Dec 31 ,2004 is Insurance Expense Dr 900 Prepaid Insurance Cr 900 The insurance expense reported would be $900 During 2005, the insurance would be used for the entire 12 months.

  • Adjusting Entry: Provide the missing journal entry for Prepaid rent.

    333099 Adjusting Entry: Provide the missing journal entry for Prepaid rent. Prepaid rent at 1/1/10 was $20,000. During 2010 rent payments of $123,000 were made and charged to "rent expense."

  • Adjusting Entries Process

    Prepare the adjusting entry for depreciation at Dec. 31, post adjustments to T Accounts, and indicate the balance sheet presentation of the equipment at Dec. 31. b. Brief Exercise BE3-5 Prepare adjusting entry for prepaid expense.

View More Related Solutions