On October 1, 2019 your company paid its insurance agent P2,400 for the annual insurance premium covering the twelve-month period beginning on December I. 1. Prepare the initial entries to record the payment of insurance. 2. What date should be used to record the December adjusting entry? 3. What are the accounts involved in the adjusting entries? 4. Prepare the adjusting entries. 5. How much is the adjusted balance of the Prepaid Insurance?

On October 1, 2019 your company paid its insurance agent P2,400 for the annual insurance premium covering the twelve-month period beginning on December I. 1. Prepare the initial entries to record the payment of insurance. 2. What date should be used to record the December adjusting entry? 3. What are the accounts involved in the adjusting entries? 4. Prepare the adjusting entries. 5. How much is the adjusted balance of the Prepaid Insurance?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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