Adjusting Accounts for Financial Statements

On July 1, 2021 a company paid the RM6,000 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31, 2021?:

• RM3,000.

• RM6,000.

• RM1,500.

• RM4,500.

• RM2,500.

On July 1, 2021 a company paid the RM6,000 premium on a one-year insurance policy with benefits beginning on that date. What will be the prepaid insurance on the Statement of Financial Position as at December 31, 2021?:

• RM1,500.

• RM4,500.

• RM6,000.

• RM3,000.

• RM2,500.

A company had no office supplies available at the beginning of the year. During the year, the company purchased RM330 worth of office supplies. On December 31, RM105 worth of office supplies remained. How much should the company report as office supplies expense for the year?

• RM435.

• RM105.

• RM225.

• RM205.

• RM330.

Anne company had RM7000 office supplies available at the beginning of the year. During the year, the company purchased RM3000 worth of office supplies. On December 31, 1300 worth of office supplies remained. How much should the company report as office supplies expense for the year?

• RM8,300

• RM8,700

• RM10,000

• RM7,000

• RM 3,000

On January 1, 2021 a company purchased a five-year insurance policy for RM2,400 with coverage starting immediately. If the purchase was recorded in the Prepaid Insurance account, and the company records adjustments only at year-end, the adjusting entry at the end of the year is:

• Debit Insurance Expense, RM1,920; credit Prepaid Insurance, RM1,920.

• Debit Insurance Expense, RM480; credit Prepaid Insurance, RM480.

• Debit Prepaid Insurance, RM480; credit Insurance Expense, RM480.

• Debit Prepaid Insurance, RM1,920; credit Insurance Expense, RM1,920.

• Debit Prepaid Insurance, RM2,400; credit Cash, RM2,400.

On May 1, a two-year insurance policy was purchased for RM12,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31?

• RM500.

• RM3,500.

• RM4,000.

• RM8,000.

• RM12,000.

On May 1, a two-year insurance policy was purchased for RM12,000 with coverage to begin immediately. What is the amount of insurance expense that would appear on the company's Statement of Financial Position as at December 31?

• RM500.

• RM3,500.

• RM4,000.

• RM8,000.

• RM12,000.

A company purchased a new delivery van at a cost of RM53,000 on July 1. The delivery van is estimated to have a useful life of 5 years and a residual value of RM4,100. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the van during the first year ended December 31?

• RM5,300.

• RM4,920.

• RM4,890.

• RM5,710.

• RM9,780.

A company purchased a new delivery van at a cost of RM53,000 on July 1, 2021. The delivery van is estimated to have a useful life of 5 years and a residual value of RM4,100. The company uses the straight-line method of depreciation and provide a full year depreciation in the year of purchase. How much depreciation expense will be recorded for the van during the first year ended December 31, 2021?

• RM5,300.

• RM4,920.

• RM4,890.

• RM5,710.

• RM9,780.

A company's Office Supplies account shows a beginning balance of RM790 and an ending balance of RM780. If office supplies expense for the year is RM4,050, what amount of office supplies was purchased during the period?

• RM3,270.

• RM4,040.

• RM3,300.

• RM4,830.

• RM4,840.