The balance in the Prepaid Insuranceaccount before adjustment at theend of the year is P7,200, whichrepresents twelve months' insurancepurchased on December 1. Theadjusting entry required on Dec. 31,2014 isdebit Insurance Expense, P600; creditInsurance Payable, P600.debit Insurance Expense, P600; creditPrepaid Insurance, P600.debit Insurance Expense, P6,600; creditPrepaid Insurance, P6,600.debit Prepaid Insurance, P600; creditInsurance Expense, P600.debit Prepaid insurance, P7,200; creditInsurance Expense, P7,200. 89% i 6:47 PMAn item that represents servicesprovided by a firm for which it willreceive payment in the future iscalleda prepaid expensean accrued revenuean accrued expensean unearned revenueThe Supplies account had a P2,800debit balance at the end of theperiod before adjustment forsupplies used, and an inventory ofP600 worth of unused supplies wason hand. Which of the following isthe required adjusting entry?Debit Supplies Expense P2,200 and creditSupplies P2,200.Debit Supplies P600 and credit SuppliesExpense P600.Debit Supplies Expense P600 and creditSupplies P600.Debit Supplies P2,200 and credit SuppliesExpense P2,200.

Answered: Image /qna-images/answer/99bd8ddd-8bd8-4e60-824d-48785f88a207.jpg

The balance in the Prepaid Insurance * account before adjustment at the end of the year is P7,200, which represents twelve months' insurance purchased on December 1. The adjusting entry required on Dec. 31, 2014 is debit Insurance Expense, P600; credit Insurance Payable, P600. debit Insurance Expense, P600; credit Prepaid Insurance, P600. debit Insurance Expense, P6,600; credit Prepaid Insurance, P6,600. debit Prepaid Insurance, P600; credit Insurance Expense, P600. debit Prepaid insurance, P7,200; credit Insurance Expense, P7,200.

The balance in the Prepaid Insurance * account before adjustment at the end of the year is P7,200, which represents twelve months' insurance purchased on December 1. The adjusting entry required on Dec. 31, 2014 is debit Insurance Expense, P600; credit Insurance Payable, P600. debit Insurance Expense, P600; credit Prepaid Insurance, P600. debit Insurance Expense, P6,600; credit Prepaid Insurance, P6,600. debit Prepaid Insurance, P600; credit Insurance Expense, P600. debit Prepaid insurance, P7,200; credit Insurance Expense, P7,200.

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Financial Statement Analysis

Section: Chapter Questions

Problem 14.9BE

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