a. Paid P24,000 for a 1-year fire insurance policy to commence on Sept. 1. The amount of premium was debited to Prepaid Insurance. 8,000 * Your answer b. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Ajeno Savings Bank on Oct. 1. Principal and interest will be paid after 1-year. * Your answer c. Paid P160,000 cash to purchase a delivery van (surplus) on Jan. 1. The van was expected to have a 3-year life and a P10,000 salvage value. Depreciation is computed on a straight-line basis.
a. Paid P24,000 for a 1-year fire insurance policy to commence on Sept. 1. The amount of premium was debited to Prepaid Insurance. 8,000 * Your answer b. Borrowed P100,000 by issuing a 1-year note with 7% annual interest to Ajeno Savings Bank on Oct. 1. Principal and interest will be paid after 1-year. * Your answer c. Paid P160,000 cash to purchase a delivery van (surplus) on Jan. 1. The van was expected to have a 3-year life and a P10,000 salvage value. Depreciation is computed on a straight-line basis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:6:04 PM A
i all a 65
docs.google.com/forms/d/e/1FA
a. Paid P24,000 for a 1-year fire insurance
policy to commence on Sept. 1. The
amount of premium was debited to
Prepaid Insurance. 8,000 *
Your answer
b. Borrowed P100,000 by issuing a 1-year
note with 7% annual interest to Ajeno
Savings Bank on Oct. 1. Principal and
interest will be paid after 1-year.
Your answer
c. Paid P160,000 cash to purchase a
delivery van (surplus) on Jan. 1. The van
was expected to have a 3-year life and a
P10,000 salvage value. Depreciation is
computed on a straight-line basis. *
Your answer
Transcribed Image Text:6:04 PM A
ll
d. Received an P18,000 cash advance for
a contract to provide services in the
future. the contract required a 1-year
commitment, starting Apr. 1. *
Your answer
e. Purchased P6,400 of supplies on
account. At year-end, P750 of supplies
remained on hand. *
Your answer
f. Invested P90,000 cash in certificate of
deposit that paid 4% annual interest. the
certificate was acquired on May 1 and
carried a 1-year-term to maturity.
Principal and interest will be paid after 1-
year.
Your answer
g. Paid P78,000 cash in advance on Sept.
1 for a 1-year lease of the office space.
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