An analysis of Puge Co.'s unadjusted prepaid expense account at December 31, 20x3, revealed the following: • An opening balance of P1,500 for Puge Co.'s comprehensive insurance policy. Puge Co. had paid an annual premium of P3,000 on July 1, 20x2. • A P3,200 annual insurance premium payment made July 1, 20x3. • AP1,500 advance rental payment for a warehouse Puge Co. leased for one year beginning January 1, 20x4. In its December 31, 20x3 balance sheet, what amount should Puge Co. report as prepaid expenses?

An analysis of Puge Co.'s unadjusted prepaid expense account at December 31, 20x3, revealed the following: • An opening balance of P1,500 for Puge Co.'s comprehensive insurance policy. Puge Co. had paid an annual premium of P3,000 on July 1, 20x2. • A P3,200 annual insurance premium payment made July 1, 20x3. • AP1,500 advance rental payment for a warehouse Puge Co. leased for one year beginning January 1, 20x4. In its December 31, 20x3 balance sheet, what amount should Puge Co. report as prepaid expenses?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 69E: Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1,...

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