2. Assume that rent of P43,200 was paid on September 1, 2011, to cover a one- year period from that date. Prepare the journal entries needed to record (a) the payment and (b) the adjustment as of December 31, 2011, using both the asset method and the expense method. Asset Method Expense Method G Prepenid rent Carh 13,200 6) 13p00 3. On June 1, 2008, EBC Company received a total of P13,500 as payment in advance for a one-year subscription fee and to adjust the accounts on December 31, 2008 using the liability method and the revenue method. Liability Method Revenue Method a)

2. Assume that rent of P43,200 was paid on September 1, 2011, to cover a one- year period from that date. Prepare the journal entries needed to record (a) the payment and (b) the adjustment as of December 31, 2011, using both the asset method and the expense method. Asset Method Expense Method G Prepenid rent Carh 13,200 6) 13p00 3. On June 1, 2008, EBC Company received a total of P13,500 as payment in advance for a one-year subscription fee and to adjust the accounts on December 31, 2008 using the liability method and the revenue method. Liability Method Revenue Method a)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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