- Home >
- Business Finance >
- Toro, Inc. paid $8,280 to renew its only insurance policy for three years on Mar
Toro, Inc. paid $8,280 to renew its only insurance policy for three years on Mar
Question Description
Toro, Inc. paid $8,280 to renew its only insurance policy for three years on March 1, year 1, the effective date of the policy. At March 31, year 1, Toro's unadjusted trial balance showed a balance of $345 for prepaid insurance and $8,280 for insurance expense. What amounts should be reported for prepaid insurance and insurance expense in Toro's financial statements for the three months ended March 31, year 1?
Prepaid insurance |
Insurance expense |
|
a.☐ |
$8,050 |
$345 |
b.☐ |
$8,050 |
$575 |
c.☐ |
$8,200 |
$300 |
d.☐ |
$8,250 |
$230 |
Jones, a consultant, keeps her accounting records on a cash basis. During year 2, Jones collected $140,000 in fees from clients. At December 31, year 1, Jones had accounts receivable of $24,000. At December 31, year 2, Jones had accounts receivable of $47,000, and unearned fees of $4,200. On an accrual basis, what was Jones's service revenue for year 2?
a. ☐$129,256
b. ☐$132,949
c. ☒$158,800
d. ☐$166,186
A cash flow of $250,000 may be received by Lydia Nickels, Inc. in one year, two years, or three years, with probabilities of 25%, 60%, and 35%, respectively. The rate of interest on default risk-free investments is 6%.
What is the expected present value of Lydia Nickels' cash flow (in whole dollars)?
- ☐$132,380
- ☐$266,994
- ☐$265,930
- ☐$133,550
This question has not been answered.
Create a free account to get help with this and any other question!
Similar Content
The Road
by Cormac McCarthy
A Separate Peace
by John Knowles
A Portrait of the Artist as a Young Man
by James Joyce
A Passage to India
by E. M. Forster
Blink
by Malcolm Gladwell
The Awakening
by Kate Chopin
Beowulf
by Anonymous Anglo-Saxon poet
Black Beauty
by Anna Sewell
The Hunger Games
by Suzanne Collins
Studypool values your privacy. Only questions posted as Public are visible on our website.
Brown University
1271 Tutors
California Institute of Technology
2131 Tutors
Carnegie Mellon University
982 Tutors
Columbia University
1256 Tutors
Dartmouth University
2113 Tutors
Emory University
2279 Tutors
Harvard University
599 Tutors
Massachusetts Institute of Technology
2319 Tutors
New York University
1645 Tutors
Notre Dam University
1911 Tutors
Oklahoma University
2122 Tutors
Pennsylvania State University
932 Tutors
Princeton University
1211 Tutors
Stanford University
983 Tutors
University of California
1282 Tutors
Oxford University
123 Tutors
Yale University
2325 Tutors