provide the answer for question 6 and 7 Use the following information for the next two questions:Entity A prepays one-year insurance for #240,000 on September 1,20x1.6. If Entity A uses the asset method of initial recording ofprepayments of expenses, the year-end adjustment wouldinclude aa. debit to prepaid insurance of P80,000.b. credit to prepaid insurance of P80,000.c. debit to insurance expense of #160,000.d. credit to insurance expense of P160,000.onndd co lem bes7. If Entity A uses the expense method of initial recording ofprepayments of expenses, the year-end adjustment would-include aair toa. debit to prepaid insurance of #80,000.b. credit to prepaid insurance of P160,000.debit to insurance expense of P80,000.d. credit to insurance expense of P160,000.С.

prepaid expenses are those expenses which are paid in advance before their occurrence to payment.…

Answered: Entity A prepays one-year insurance for…

Business

Accounting

Entity A prepays one-year insurance for 240,000 on September 1, 20x1

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter22: End-of-fiscal-period Work For A Corporation

Section: Chapter Questions

Problem 1AP

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