On March 1, a business paid 3,600 for a twelve-month liability ...

[abc]

On March 1, a business paid 3,600 for a twelve-month liability insurance policy. On April 1, the same business entered into a two-year rental contract for equipment at a total cost of 18,000 . Determine the following amounts: (a) insurance expense for the month of March (b) prepaid insurance as of March 31 (c) equipment rent expense for the month of April (d) prepaid equipment rental as of April 30

Question 2

Inventory in an Enterprise Fund will most likely affect which equity classification?
 
  A. Nonspendable net position.
  B. Net investment in capital assets.
  C. Restricted net position.
  D. Unrestricted net position.

[Ksh22]

Answer to Question 1

(a) 300 (3,600/12 = 300)
(b) 3,300 (3,600 - 300 = 3,300)
(c) 750 (18,000/24 = 750)
(d) 17,250 (18,000 - 750 = 17,250)

Answer to Question 2

D

[abc]

Thank you

[Ksh22]

Happy to help you