The trial balance for Cheyenne Corp. appears as follows: Cheyenne Corp.
Trial Balance
December 31, 2022
Cash $320
Accounts Receivable 564
Prepaid Insurance 89
Supplies 194
Equipment 4320
Accumulated Depreciation, Equipment $650
Accounts Payable 415
Common Stock 1300
Retained Earnings 1510
Service Revenue 3232
Salaries and Wages Expense 1080
Rent Expense 540
$7107 $7107

If, on December 31, 2022, the insurance still unexpired amounted to $22, the adjusting entry would contain a:

debit to Prepaid Insurance for $22.

debit to Prepaid Insurance for $67.

credit to Prepaid Insurance for $22.

debit to Insurance Expense for $67.

step-by-step explanation:

part a. the differences are decreasing, so we know the sequence is not arithmetic. the ratios are constant (=3/4), so we know the sequence is geometric.

part b. from part a, we know the common ratio is 3/4, so each term is 3/4 of the one before. the initial term is the number of gallons at h=1.

g[h] = (3/4)·g[h-1]

g[1] = 384 . . . . initial value required for a recursive definition

part c. the general formula for a geometric sequence is

a[n] = a[1]·r^(n-1)

we have a[1] = 384, r = 3/4, and the term number given by h. the formula that follows is

g[h] = 384·(3/4)^(h-1)

part d. filling in the value and doing the arithmetic, we have

g[12] = 384·(3/4)^11 ≈ 384·0.042235136 ≈ 16.2183 . . gallons

part e. each gallon is 4 quarts, so

16.2183 gal × 4 qt/gal = 64.8732 qt