On January 1, 2010, Dimes and Quarters Corp

question 118

Essay

On January 1, 2010, Dimes and Quarters Corp. purchased a general liability insurance policy for $3,600 to provide coverage for the calendar year.
1. If the company recorded the policy as an asset when purchased, what is the monthly adjusting journal entry that should be recorded at January 31, 2010?
*2. If the company expensed the cost of the policy on January 1, 2010, what is the monthly adjusting entry that should be recorded at January 31, 2010?

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Definitions:

Emotional Intelligence

The skill to understand, regulate, and articulate personal emotions while dealing thoughtfully and compassionately with others.

Self-Management

The ability to control one’s emotions and act with honesty and integrity in a consistent and acceptable manner.

Honesty and Integrity

The adherence to truthfulness, fairness, and uprightness in actions and principles.

Social Awareness

Having empathy for others and having intuition about work problems.