a. Using the Asset Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry on December 31, 2020. b. Using the Expense Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry on December 31, 2020.

a. Using the Asset Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry on December 31, 2020. b. Using the Expense Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry on December 31, 2020.

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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Question

100%

On September 1, 2020, Mr. Chu paid P62,940 worth of insurance premium for two years.

a. Using the Asset Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry on December 31, 2020.

b. Using the Expense Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry on December 31, 2020.

Activity 1
On September 1, 2020, Mr. Chu paid P62,940 worth of insurance premium for two years.
a. Using the Asset Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry
on December 31, 2020.
b. Using the Expense Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal
Entry on December 31, 2020.
2. On April 1, 2020 Took Co. paid P43,800 for a one-year advance rent.
a. Using the Asset Method, give the Journal Entry on April 1, 2020 and the Adjusting Journal Entry on
December 31, 2020.
b. Using the Expense Method, give the Journal Entry on April 1, and the Adjusting Journal Entry on
December 31, 2020

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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