An entity’s financial year ends on 30 June. On 1 May it pays a 12-month insurance premium of $24,000. Under the accrual system of accounting how much of the premium will be recognised as an expense for the current year ended 30 June and how much will be treated as an asset (prepaid insurance)?$20,000 expense and $4,000 prepaid insurance$6,000 expense and $18,000 prepaid insurance$12,000 expense and $12,000 prepaid insurance$4,000 expense and $20,000 prepaid insurance

An entity's financial year ends on 30 June 2015. On 1 April 2015 it pays a 12-month insurance premium of $16 000. Under the accrual system of accounting, how much of the premium will be recognised as an asset for the year ended 30 June 2015?

Based on the following information relating to Matt’s Constructions, identify (in words) what adjustment is required at 30 June, the end of the accounting period. The first one has been answered to provide an example. (a) Matt paid $12,000 on 1 May 2024, for a 12-month insurance policy, recording it as Prepaid Insurance. Two months of the insurance policy have been incurred, so $2,000 needs to come out of the Prepaid Insurance (asset) account and into Insurance Expense to show that some of the expense that was prepaid is no longer an asset. (b) Matt employs a casual labourer when the business is particularly busy. The labourer worked in the last week of June 2024 and is owed $1,800. This has not been recorded. (c) Matt has supplies of nails and screws for construction jobs. The supplies account shows a balance of $300 but there is actually only $60 worth of nails and screws left on hand at 30 June. (d) Matt has tools and equipment that originally cost $10,000 two years ago. He is depreciating them using the straight-line method. They have an expected life of five years with no residual value. He has only recorded depreciation for the first year. (e) Matt constructed a shed for a customer in January 2024, and charged $900 on credit. The customer has now been declared bankrupt and Matt will not be able to collect the amount owing to him. Matt uses the allowance method. (f) Matt repaired a customer’s letterbox on his way home from work on 30 June 2024 for $150 on credit. He forgot to record it. (g) A customer who was going on holidays paid Matt $5,000 in advance for some renovation work on their home which Matt recorded as Unearned Income. By 30 June, 80% of the work had been performed.

ou are doing Management report for March '22 and you see insurance premium of £2000 paid for the period Apr '22 – Mar '23. How you will show this expense in you report explain with journal.

On September 1, 20X1, a firm purchased a 1-year insurance policy for $5,700 and paid the full premium in advance. The insurance expense associated with this policy for the year ending December 31, 20X1, is:Multiple Choice$475.$1,900.$3,800.$5,700

On September 1, Taggert Company paid $1,800 for a 6-month insurance premium beginning September 1. Which of the following statements are correct regarding the accounting for this insurance over the six-month period? (Check all that apply.)Multiple select question.Taggert will debit Prepaid Insurance for $1,800 on Sept. 1.Taggert will debit Insurance Expense for $300 on Sept. 30.Taggert will credit Prepaid Insurance for $300 on Sept. 30.Taggert will debit Insurance Expense for $1,800 on Sept. 1.Taggert will debit Prepaid Insurance for $1,500 on Sept. 30.