Hoffman, Incorporated adjusts its books each month but closes its books at the end of...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Hoffman, Incorporated adjusts its books each month but closes its books at the end of the year. The companys unadjusted trial balance at March 31 is as follows:
| Debit | Credit | |
|---|---|---|
| Cash | $ 10,920 | |
| Accounts Receivable | 9,620 | |
| Supplies | 1,300 | |
| Prepaid Insurance | 3,120 | |
| Equipment | 26,000 | |
| Accumulated Depreciation: Equipment | $ 10,400 | |
| Unearned Service Revenue | 6,500 | |
| Capital Stock | 5,200 | |
| Retained Earnings | 23,400 | |
| Dividends | 1,560 | |
| Service Revenue Earned | 16,510 | |
| Salaries Expense | 7,800 | |
| Utilities Expense | 390 | |
| Rent Expense | 1,300 | |
| Totals | $ 62,010 | $ 62,010 |
On March 1, Hoffman paid in advance for four months' insurance. The necessary adjusting entry at March 31 includes which of the following?
Multiple Choice
-
A credit to Prepaid Insurance for $2,340.
-
A debit to Prepaid Insurance for $2,340.
-
A credit to Prepaid Insurance for $780.
-
A debit to Prepaid Insurance for $780.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.