The payment of the P19,000 insurance premium for two years in advance was originally recorded as Prepaid Insurance. One year of the policy has now expired.All employees earn a total of P10,000 per day for a five-day week beginning on Monday and ending Friday. They were paid for the workweek ending December 24.The Supplies account had a balance of P4,480 of January 1. During the year, P11,000 of supplies were brought. A year-end inventory showed that P6,400 worth of supplies are still on hand.Equipment costing P588,000 has a useful life of five years with an P80,000 salvage value at the end of five years. Record the depreciation for the year.

Adjusting entries are those entries which are passed at the end of the period in order to reflect…

Answered: The payment of the P19,000 insurance…

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement

Section: Chapter Questions

Problem 14E

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The payment of the P19,000 insurance premium for two years in advance was originally recorded as Prepaid Insurance. One year of the policy has now expired.
All employees earn a total of P10,000 per day for a five-day week beginning on Monday and ending Friday. They were paid for the workweek ending December 24.
The Supplies account had a balance of P4,480 of January 1. During the year, P11,000 of supplies were brought. A year-end inventory showed that P6,400 worth of supplies are still on hand.
Equipment costing P588,000 has a useful life of five years with an P80,000 salvage value at the end of five years. Record the depreciation for the year.

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