ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual insurance. ABC uses asset method. What is the amount of Prepaid Insurance to be reflected on ABC Company Statement of Financial Position at the end of the year? A. 0 B. 10,000 C. 2,000 D. 12,000
ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual insurance. ABC uses asset method. What is the amount of Prepaid Insurance to be reflected on ABC Company Statement of Financial Position at the end of the year? A. 0 B. 10,000 C. 2,000 D. 12,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 5RE: Garcia Company rents out a portion of its building to Jerry Company for 1,000 per month. On August...
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ABC Company acquired a fire insurance on Nov. 1, 2021. The company paid P12,000 for the said annual insurance. ABC uses asset method. What is the amount of Prepaid Insurance to be reflected on ABC Company
A. 0
B. 10,000
C. 2,000
D. 12,000
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