Payment of insurance premiums in advance gives rise to Accrued expense O Prepaid expense Unearned income Accrued income A sole proprietor settles the rental expenses of the entity amounting to P10,000 through his personal bank account. The journal entry should be (Debit account/Credit account): O Dr. Rent Expense . Cr. Capital. O Dr. Rent Expense . Cr. PSBank. O Dr. Rent Expense . Cr. Cas. Dr. Rent Expense. Cr. Drawings.

Payment of insurance premiums in advance gives rise to Accrued expense O Prepaid expense Unearned income Accrued income A sole proprietor settles the rental expenses of the entity amounting to P10,000 through his personal bank account. The journal entry should be (Debit account/Credit account): O Dr. Rent Expense . Cr. Capital. O Dr. Rent Expense . Cr. PSBank. O Dr. Rent Expense . Cr. Cas. Dr. Rent Expense. Cr. Drawings.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11PA: Prepare journal entries to record the following transactions. Create a T-account for Prepaid...

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Prepare journal entries to record the following transactions. Create a T-account for Prepaid Insurance, post any entries that affect the account, and tally the ending balance for the account (assume Prepaid Insurance beginning balance of $9,000). A. April 1, paid cash for one-year policy, $18,000 B. December 31, unexpired premiums, $4,500
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Directions: Choose the letter corresponding to the correct answer for each of the questionsprovided below.1. Accounts receivable or the amount to be received when a customer orders on accountis an example of what account?a. Asset c. Equityb. Liability d. All of the above2. Expenses incurred on paying utilities belong to what type of account?a. Asset c. Equityb. Liability d. All of the above3. If Company A borrows money from company B, the transaction results toa. Increase in asset of A and increase in asset in Bb. Increase in asset of A and decrease in equity of Bc. Increase in asset of A and no effect on assets of Bd. Both B and C4. Equity means assets minus liabilities. Other terms that can be used synonymously withequity are the following except :a. Capital c. Net worthb. Net assets d. Profit5. Sources of legal obligation are the following excepta. The law c. Debtsb. Contracts d. Other operation by law
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Paid premium by cheque R300. I answered it the following way: Asset:cash liability: Insurance premium -R300 DR -R300 CR Is my anwser correct? This is an accounting equation question
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