Use the following information for the next two items:Entity A provides bookkeeping services to Entity B for a monthly retainer fee (fixed monthly fee) of ₱100,000. On December 1, 20x1, Entity A receives advanced fees of ₱300,000 covering the months of December 20x1 and January and February of 20x2. Provide the journal entry to record the receipt of the advanced fee on December 1, 20x1 under each of the following methods: (a) Liability method and (b) Income method. Provide the adjusting entry on December 31, 20x1 under each of the following methods: (a) Liability method and (b) Income method. Use the following information for the next two items:Entity A prepays one-year insurance for ₱240,000 on September 1, 20x1. Provide the journal entry to record the prepayment of the insurance on September 1, 20x1 under each of the following methods: (a) Asset method and (b) Expense method. Provide the adjusting entry on December 31, 20x1 under each of the following methods: (a) Asset method and (b) Expense method.

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Answered: Use the following information for the…

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

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Use the following information for the next two items:

Entity A provides bookkeeping services to Entity B for a monthly retainer fee (fixed monthly fee) of ₱100,000. On December 1, 20x1, Entity A receives advanced fees of ₱300,000 covering the months of December 20x1 and January and February of 20x2.

Provide the journal entry to record the receipt of the advanced fee on December 1, 20x1 under each of the following methods: (a) Liability method and (b) Income method.

Provide the adjusting entry on December 31, 20x1 under each of the following methods: (a) Liability method and (b) Income method.

Use the following information for the next two items:

Entity A prepays one-year insurance for ₱240,000 on September 1, 20x1.

Provide the journal entry to record the prepayment of the insurance on September 1, 20x1 under each of the following methods: (a) Asset method and (b) Expense method.

Provide the adjusting entry on December 31, 20x1 under each of the following methods: (a) Asset method and (b) Expense method.

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