The balance in the prepaid insurance account, before adjustment at the end of the year, is $27,000. Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment: a. The amount of insurance expired during the year is $20,250. b. The amount of unexpired insurance applicable to future periods is $6,750.

a. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

b. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

Explanation:

Before adjustment at the end of the year, the balance in the prepaid insurance account is $27,000

a. The amount of insurance expired during the year is $20,250. The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

b. The amount of unexpired insurance applicable to future periods is $6,750. The amount of insurance expired during the year = $27,000 - $6,750 = $20,250

The adjusting entry:

Debit Insurance expense $20,250

Credit Prepaid insurance $20,250

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the clients (funders) and customers (individual nonprofit staff) are great to work with. that i can be open about being a person of faith when appropriate. the variety of my tasks each day.