Three-year insurance premium payment, Accounting Basics

+44 141 628 6080
[email protected]

Three-year insurance premium payment

L Company discovered that a three-year insurance premium payment of $240,000 one year ago was debited to insurance expense.

Required:

1. What action is required? Ignore taxes.

2. What action is required if the error is not discovered until 4 years after it occurred?

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Three-year insurance premium payment

Reference No:- TGS055960

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Overall break-even point for the entire company

If the sales mix were to shift to product A with total dollar sales remaining constant, the overall break-even point for the entire company? would increase, would not change, could increase or decrease, would decrease.

Q : What is total period cost for month under variable costing

Overhead $15, variable selling & admin. $6. fixed costs= fixed manufacturing overhead $313,100, fixed selling & admin. expenses $114,000. What is the total period cost for the month under variable costing?

Q : Gain or loss experienced by hurst in reacquiring bonds

The remainder of the outstanding bonds is reacquired by exercising the bonds' call feature. In the final analysis, how much was the gain or loss experienced by Hurst in reacquiring its 8% bonds? (Assume the firm used straightline amortization.) Sh

Q : Compute the amount of gain-loss on the transfer of land

Ludwig, Inc., which owes Giffin Co. $2,400,000 in notes payable, is in financial difficulty. To eliminate the debt, Giffin agrees to accept from Ludwig land having a fair value of $1,830,000 and a recorded cost of $1,350,000. (a) Compute the amoun

Q : Three-year insurance premium payment

L Company discovered that a three-year insurance premium payment of $240,000 one year ago was debited to insurance expense.

Q : Land after the complete liquidation

What amount of gain or loss does Michelle recognize in the complete liquidation and what is her tax basis in the building and land after the complete liquidation?

Q : Contemplating an ad campaign-net operating income

Doe company's variable expenses are 29% of sales. Doe is contemplating an ad campaign that will cost $19,000. If sales increase by $79,000, the company's net operating income should increase by: (do not round intermediate calculations).

Q : Equipments net present value

The Calder Company purchased a piece of equipment for $20000. the equipment has a life a ten years. the equipment will provide cost savings of $3500, after which time it will have asalvage value of $2500 at the end of 10 years. if the company'sdis

Q : Probable type of behavior that each of the costs exhibits

What is the probable type of behavior that each of the costs exhibits? The company expects to produce 10,000 caps this month. Would you expect each type of cost to increase or decrease? Why? Can the total cost of 10,000 caps be determined? Explain.

1922857

Questions
Asked

3,689

Active Tutors

1457339

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Three-year insurance premium payment

Reference No:- TGS055960

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Overall break-even point for the entire company

Q : What is total period cost for month under variable costing

Q : Gain or loss experienced by hurst in reacquiring bonds

Q : Compute the amount of gain-loss on the transfer of land

Q : Three-year insurance premium payment

Q : Land after the complete liquidation

Q : Contemplating an ad campaign-net operating income

Q : Equipments net present value

Q : Probable type of behavior that each of the costs exhibits

Learning theories and principles and quality health care

Assess theories and conceptual models from nursing

Describe the concept of personhood as used in the nursing

Identify application of nursing into clinical practice

Identify model used as framework for future evidence project

Discuss what is meant by the term qualitative research

Examine science and art of theory development-evaluation

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Three-year insurance premium payment

Reference No:- TGS055960

Recent Questions Asked Accounting Basics

Q : Overall break-even point for the entire company

Q : What is total period cost for month under variable costing

Q : Gain or loss experienced by hurst in reacquiring bonds

Q : Compute the amount of gain-loss on the transfer of land

Q : Three-year insurance premium payment

Q : Land after the complete liquidation

Q : Contemplating an ad campaign-net operating income

Q : Equipments net present value

Q : Probable type of behavior that each of the costs exhibits

Asked Questions