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Financial Statement Impact On December 1, 2014 Golden Acres purchased hazard insurance. OnDecember 31, 2014 an adjusting entry is required to journalize theinsurance used in December. Two sliders are

Financial Statement Impact

On December 1, 2014 Golden Acres purchased hazard insurance. OnDecember 31, 2014 an adjusting entry is required to journalize theinsurance used in December. Two sliders are provided to evaluatethe financial statement impact of changes in the amount and term ofthe insurance. The slider impact is shown first on a timeline, andthen in the T-accounts of the accounting equation.

Answer the following questions using the sliders, the dynamictimeline, and the T-accounts. If an answer is zero, enter "0".

1. If the amount of prepaid insurance is $1,200 and the term is 24months, the amount of the adjusting entry on Dec. 31, 2014 is $.?
2. If the amount of prepaid insurance is $4,800 and the term is 6months, the amount of the adjusting entry on Dec. 31, 2014 is $.?
3. If the term of the prepaid insurance increases and the amountremains the same, the amount of the adjusting entry for Dec. 31,2014 - Decrease , stays the same or increases
   
4. If the amount of prepaid insurance increases and the termremains the same, the amount of the adjusting entry for Dec. 31,2014 - Select your answer -Decrease , stays the same orincreases
5. If the amount of prepaid insurance is $3,600 and the term is 24months, the Prepaid Insurance balance on Dec. 31, 2014 is $. ?
6. If the amount of prepaid insurance is $2,400 and the term is 18months, the Prepaid Insurance balance on May 31, 2016 is $ ?

May 21 2021 View more View Less

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