SOLUTION: The financial year-end of Luna’s Transport Services is 28 February 20.8. Luna Transport Services paid R24 000 on 28 February 20.8 to Vice Insurance for January 20.8 to 31 Decembe
Algebra.Com
Question 1143982: The financial year-end of Luna’s Transport Services is 28 February 20.8. Luna Transport Services paid R24 000 on 28 February 20.8 to Vice Insurance for January 20.8 to 31 December 20.8. The monthly insurance premium is R2 000. Which of the following represents the correct entry for the closing transfer at the year-end?
(1) The prepaid expenses account in the general ledger will be credited with R4 000 and the insurance account in the general ledger will be debited with R4 000.
(2) The prepaid expenses account in the general ledger will be credited with R24 000 and the insurance account in the general ledger will be debited with R24 000.
(3) The prepaid expenses account in the general ledger will be debited with R20 000 and the insurance account in the general ledger will be credited with R20 000.
(4) The prepaid expenses account in the general ledger will be debited with R24 000 and the insurance account in the general ledger will be credited with R24 000.
(5) The prepaid expenses account in the general ledger will be credited with R20 000 and the insurance account in the general ledger will be debited with R20 000.
Answer by ikleyn(52908) (Show Source): You can put this solution on YOUR website!
.
The aim of this forum is to help school students in Math.
Your post DOES NOT relate to Math.
It relates to other discipline.
Find another, more appropriate site for this post / (for such posts).
--------------
I personally am very impressed that this forum achieved so wide popularity that visitors submit their questions from
totally different areas of knowledge.
Nevertheless, let me remind/explain you that posting RELEVANT questions is a form of politeness.
In opposite, posting IRRELEVANT questions is totally different (if not opposite) form.
For example, I should spend my time practically for nothing explaining it to you . . .
Have a nice evening (!)
RELATED QUESTIONS
On 1 March 20.7 Luna Transport Services had a balance for allowance for credit losses of... (answered by ikleyn)
Mr B Smith, a debtor of Luna Transport Services, settled his account of R10 000 in cash... (answered by ikleyn)
Luna’s Transport Services paid Gizmo Packaging, R20 000 via an electronic transfer into (answered by ikleyn)
The following information was obtained from the accounting records of Nkomo Traders for... (answered by ikleyn)
on may 15,the company rendered printing services for P 200,00.00 in cash and paid P... (answered by ikleyn)
After the success of the company’s first two months, Santana Rey continues to operate... (answered by ikleyn,MathTherapy)
Kumar spent $240 of his allowance on food and 20% of the remaining allowance on... (answered by Theo)
.Consider college officials in admissions registration, counseling, financial aid campus... (answered by stanbon)
H. LTD consolidated financial statement on 31 December 2020 was as follows;
Credit sales (answered by ikleyn)