An analysis of Puge Co.'s unadjusted prepaid expense account at December 31, 20x3, revealed the following: • An opening balance of P1,500 for Puge Co.'s comprehensive insurance policy. Puge Co. had paid an annual premium of P3,000 on July 1, 20x2. • A P3,200 annual insurance premium payment made July 1, 20x3. • AP1,500 advance rental payment for a warehouse Puge Co. leased for one year beginning January 1, 20x4. In its December 31, 20x3 balance sheet, what amount should Puge Co. report as prepaid expenses?

An analysis of Puge Co.'s unadjusted prepaid expense account at December 31, 20x3, revealed the following: • An opening balance of P1,500 for Puge Co.'s comprehensive insurance policy. Puge Co. had paid an annual premium of P3,000 on July 1, 20x2. • A P3,200 annual insurance premium payment made July 1, 20x3. • AP1,500 advance rental payment for a warehouse Puge Co. leased for one year beginning January 1, 20x4. In its December 31, 20x3 balance sheet, what amount should Puge Co. report as prepaid expenses?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11PA: Prepare journal entries to record the following transactions. Create a T-account for Prepaid...

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