The hotel company "NI" showed profits of € 10,000 (before tax) for the period 2020 and € 12,000 for 2021. In 2021 the internal auditors discovered that on 01/01/2020, the company recorded a premium expense of € 3,000 (with a corresponding reduction of the fund), an amount which concerned the prepayment of insurance premiums for a period of 3 years. How much should the profits for the period 2020 and 2021 be?
The hotel company "NI" showed profits of € 10,000 (before tax) for the period 2020 and € 12,000 for 2021. In 2021 the internal auditors discovered that on 01/01/2020, the company recorded a premium expense of € 3,000 (with a corresponding reduction of the fund), an amount which concerned the prepayment of insurance premiums for a period of 3 years. How much should the profits for the period 2020 and 2021 be?
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 75APSA: Note Payable and Accrued Interest Fairbome Company borrowed $60,000 on an 8%, interest-bearing note...
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The hotel company "NI" showed profits of € 10,000 (before tax) for the period 2020 and € 12,000 for 2021. In 2021 the internal auditors discovered that on 01/01/2020, the company recorded a premium expense of € 3,000 (with a corresponding reduction of the fund), an amount which concerned the prepayment of insurance premiums for a period of 3 years. How much should the profits for the period 2020 and 2021 be?
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