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To adjust the prepaid insurance account, you need to recognize the amount of insurance that has expired during the fiscal year. Starting with a prepaid insurance balance of $14,000 and an unexpired insurance amount of $3,000, the expired insurance is $14,000 - $3,000 = $11,000. The proper adjusting entry would be a debit to Insurance Expense for $11,000 and a credit to Prepaid Insurance for $11,000.
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What is the proper adjusting entry at April 30 the end of the fiscal year based on a prepaid insurance account balance before adjustment 16000 and unexpired amounts per analysis of policies 6000?
debit insurance expense 10000 credit prepaid insurance 10000
When a patient has a credit balance on his or her account what adjustment is posted to the account?
When a patient has a credit balance on their account, a refund adjustment is typically posted. This adjustment reflects the amount overpaid by the patient, which may result from overpayments, insurance adjustments, or billing errors. The credit balance can be refunded to the patient or applied to future services, depending on the practice's policy and the patient's preference.
Distinguish between the two categories of adjusting entries and identify the types of adjustments applicable to each category?
Deferrals are either prepaid expenses or unearned revenues. Adjustments are made for deferrals to record the portion that represents either the expense incurred or the revenue earned. An adjustment for prepaid expenses increases an expense and decreases an asset account. An adjustment for unearned revenue increases a revenue account and decreases a liability account. Accruals are either accrued revenues or accrued expenses. Adjustments are made for accruals to record revenues from services performed that have yet to be collected. An adjustment for accrued revenues increases an asset account and increases a revenue account. An adjustment for accrued expenses increases an expense account and increases a liability account.
Why adjustment entries are needed in accounting?
Adjusting entries are needed because transactions made at different times. For example, we purchase a computer on account for $1500 on March 5, at the time of the transaction we record the entry as March 5 Equipment-Computer (debit) $1500 Accounts Payable (credit) $1500 later in say the month, we may make a payment to this account, we need to "adjust" these accounts to show the current state of them. Say on March 20, we make a payment of $500 on the account, we have to show this adjustment by doing the following adjusting entries. March 20 Accounts Payable (debit) $500 Cash (credit) $500 This adjusting entry reflects what we now owe to the account payable, with out the adjusting entry, our books would still be showing that we owe the full amount even though we paid part of it.
What two accounts are affected by the adjusting entry Merchandise Inventory?
The two accounts affected by the adjusting entry for Merchandise Inventory are the Merchandise Inventory account and the Cost of Goods Sold (COGS) account. When the inventory is adjusted to reflect the actual count or value, the Merchandise Inventory account is updated to show the correct ending balance, while the COGS account is adjusted to account for any changes in the total cost of inventory sold during the period. This adjustment ensures accurate financial reporting and inventory management.
What is the proper adjusting entry at April 30 the end of the fiscal year based on a prepaid insurance account balance before adjustment 16000 and unexpired amounts per analysis of policies 6000?
debit insurance expense 10000 credit prepaid insurance 10000
What is an adjustment in medical billing?
if the healthcare provider(billing office) unable to get the charge value from insurance and patient, he just leave it as bad account and this process is called as adjustment.
What has the author James Augustin McKenna written?
James Augustin McKenna has written: 'Ascertainment of value and profits from books of account' -- subject(s): Adjustment of claims, Fire Insurance, Insurance, Fire
Distinguish between the two categories of adjusting entries and identify the types of adjustments applicable to each category?
Deferrals are either prepaid expenses or unearned revenues. Adjustments are made for deferrals to record the portion that represents either the expense incurred or the revenue earned. An adjustment for prepaid expenses increases an expense and decreases an asset account. An adjustment for unearned revenue increases a revenue account and decreases a liability account. Accruals are either accrued revenues or accrued expenses. Adjustments are made for accruals to record revenues from services performed that have yet to be collected. An adjustment for accrued revenues increases an asset account and increases a revenue account. An adjustment for accrued expenses increases an expense account and increases a liability account.
What is meant by offset in medical billing?
I Recently Received Court Document From Arbitration Demanding an offset from A Medical Insurance payment for an accident’ Is This legal or withstanding? As the plain tiff why is this necessary? Very confused!
Why adjustment entries are needed in accounting?
Adjusting entries are needed because transactions made at different times. For example, we purchase a computer on account for $1500 on March 5, at the time of the transaction we record the entry as March 5 Equipment-Computer (debit) $1500 Accounts Payable (credit) $1500 later in say the month, we may make a payment to this account, we need to "adjust" these accounts to show the current state of them. Say on March 20, we make a payment of $500 on the account, we have to show this adjustment by doing the following adjusting entries. March 20 Accounts Payable (debit) $500 Cash (credit) $500 This adjusting entry reflects what we now owe to the account payable, with out the adjusting entry, our books would still be showing that we owe the full amount even though we paid part of it.
What is cash deposit adjustment?
When you have cash deposit credit adjustment how do you post it to ledger account
What is the Utility expenses incurred but not paid adjusting entry?
This is adjusting entry for Accrued Expenses in the current accounting period, where you debit adjusting entry on expenses (Utility Expenses) account and credit adjusting entry on liabilities (Utilities Payable) account.
What is cash deposit credit adjustment?
When you have cash deposit credit adjustment how do you post it to ledger account
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
The entry to close the appropriate insurance account at the end of the accounting period is what?
Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited
What is meant by adjustment?
An adjustment is usually an entry made near the end of an accounting cycle (often during the trial balance stage) to bring an account into balance. For instance, the "books" may show a certain quantity on hand -say 1000 units- of supplie, but when you do a physical count you discover there are only 900 units on hand. At this point you will have to make an adjusting entry to the supplies expense account (a credit balance account-the supplies account has a debit balance) of 100 to offset the supplies account and bring the account in balance: Or you can just credit the difference directly into the supplies account: Debit Credit Balance Supplies- 1000 (100) 900
