After The Event Insurance Explained
After The Event Insurance Explained
Aero-TV: Penalty-Free Deployment – Insurance Adjusts CAPS Deductible
accounting assignment help wanted?
Explain, giving reasons, how the following financial events would be reflected in the financial
statements. You should consider the impact on the Balance Sheet, Income Statement and Cash Flow Statement. (Assume that the
financial statements were prepared immediately after each event. Ignore GST and income tax
effects.)
(a) purchased on credit $ 12000 inventory of tents from a supplier
(b) A customer purchased a computer, which had cost $ 1106, for $ 1515 cash.
(c) paid insurance premiums of $ 22500. The charges were for the past month
and the next two month’s coverage.
(d) Replacement electronic tills, costing $ 68000, were bought for the an outlet. The
Company financed this purchase with 6% bank loan repayable in four years.
Help appreciated.
(a.) In Income statement, that transaction will increase your Purchases.
Entry:
Debit: Purchases $12,000
Credit: Accounts Payable $12,000
In Balance Sheet, that transaction will increase your Accounts Payable.
The same entry above. Purchases is Income Statement item while Accounts Payable is Balance Sheet item.
(b.) The entry will be:
Debit: Cash $1,515
Credit: Sales $1,106
Credit: Gains $409 (Company may use different account title)
Balance Sheet increase in Cash and Income Statement increase in Revenue.
(c) Accrual Basis: Charge the payment for past month in Insurance Expense ($7,500) then the remaining is charge to Prepaid Insurance ($15,000).
Income Statement: Insurance Expense is deducted to Gross Profit to arrive in correct Net Income.
Balance Sheet: Prepaid Insurance is now part of the Current Asset.
(d.) Not sure but allow me to try. 
It depends on the installment agreement between the company and bank. Amortize the amount to be paid every year (If it’s annual instalment) considering the interest charged by the bank.
Permanent Insurance Explained – Permanent Life Insurance Types
Permanent insurance, which also offers a "permanent life insurance policy owner possible, accumulate a little money in addition to providing a death benefit in the event of premature death. When most people think about life today they think today in the largest amount of cash they can leave for a spouse and children. The result is that they buy a term policy. Term life insurance is the cheapest way of doing politics, you can buy. The problem with this is that if you hold the policy for the period and not die, there is nothing in it for you.
Your permanent insurance is very different. It costs more than term, but if you keep it to 20 or 30 years or more you are likely to reflect what you have paid into it, if you choose it for his devotion cash value. There are many different types of permanent policies. Let's take a look at a few of them.
Universal Life
Universal life insurance combines a term policy with a savings plan. The amount of money you apply for savings is flexible. It is not need a certain amount ne. This policy pays a death benefit in case the insured dies.
Variable Universal Life
This policy will also as a permanent policy as it combines an investment plan with a permanent type policy. A special license, a license NASD, is necessary in order this product as part of your money to sell investments in mutual funds or other equity linked products.
Variable Life
This policy is a combination of life insurance and an investment. The agent selling this product is also an NASD license needed in addition to his agent License.
Whole Life
This policy has probably some of the Idea of life were created. This is the original permanent policy. Most of these measures on the last Age 100th
Premium Single Life
This policy is a variation of whole life policy. It can pay you a bonus and keep your policy for as long as you wish. You can it in society at any time for its cash value.
Pay Life Limited
This permanent insurance is set up so that in them for a certain number of years to pay and pay no more then. You have your policy as long as you live.
Graded Premium Life
In the first year, you pay a smaller premium increases each year for a certain period, usually five or 10 years, to be less strong. The premium will remain level for the balance of time, you keep your policy. The first annual premium is usually required little more than half of the payment for a whole life policy. If the amount of the premiums is again more than you would pay for a whole life policy.
All permanent insurance have cash values, and most earn dividends, the company well on its investments.
For additional information, see: http://www.life-insurance-answers.net/types-of-life-insurance.html
