Yes. It will only affect the asset portion of the company's balance sheet.
When the company buys the one-year insurance policy, the journal entries will be:
Debit Credit
Prepaid insurance 1,000
Cash 1,000
When the insurance expires after a year, the journal entries will be:
Insurance Expense 1,000
Prepaid Insurance 1,000
Note:
Prepaid Insurance and Cash are both found in the assets section of the balance sheet.
Insurance Expense is found in the Income statement of the company and not in the balance sheet.
Answer:
$20,676.53
Explanation:
The qeustion is to determine Future Value of the withdrawal Anna will make in 4 years
Amount in Savings - Amount Withdrawn today) x 1 + rate - Amount to be withdrawn a year from today ) x 1 + rate ∧3 years
$38,654 - $10,000 x 1.023
= $28,564 x 1.023
= 29,313.042- 10,000 =
19,313.042 x 1.023 ∧3
=19,313.042x 1.070599167
$20,676.53
This means that after withdrawing $10,000 to day and another $10,000 one year form today, from Anna's initial savings of $38,654, she will be able to withdraw her entire balance of $20,676.53 in 4 years time.
Answer:
c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000.
Explanation:
The journal entry is shown below:
Cash $70,000 (5,000 shares × $14)
To Common stock $50,000 (5,000 shares × $10)
To Additional Paid in capital in excess of par value - Common stock $20,000 (5,000 shares × $4)
(Being the issuance of the common stock is recorded)
For recording this we debited the cash as it increased assets and at the same time it also increased the overall stockholder equity so common stock and the additional paid in capital for common stock is credited
The Code of Hammurabi was one of the earliest and most complete written legal codes, proclaimed by the Babylonian king Hammurabi, who reigned from 1792 to 1750 B.C. Hammurabi expanded the city-state of Babylon along the Euphrates River to unite all of southern Mesopotamia. The Hammurabi code of laws, a collection of 282 rules, established standards for commercial interactions and set fines and punishments to meet the requirements of justice. Hammurabi’s Code was carved onto a massive, finger-shaped black stone stele (pillar) that was looted by invaders and finally rediscovered in 1901.
