e. On May 1, 20x1, a three-year subscription to the Professional Journal in the amount of P1,800 was mailed in but not paid for. Subscriptions Expense was charged for the entire amount. f. On September 1, 20x1, paid 36 months premium of P3,600 on fire and extended coverage on the building. No amortization of this premium has been recorded to date, and the full amount remains in the Prepaid Insurance account. g. Signed a 10-year lease for a new warehouse; the closing costs of P12,000 paid on July 1, 20x1, effective date of lease, was charged to Rent Expense.
Answer the following items on a separate sheet of paper. Prepare audit adjustments for the following situations
you find in the records of Jasmine, Inc., which closes its accounts December 31, 20x1
e. On May 1, 20x1, a three-year subscription to the Professional Journal in the amount of P1,800 was
mailed in but not paid for. Subscriptions Expense was charged for the entire amount.
f. On September 1, 20x1, paid 36 months premium of P3,600 on fire and extended coverage on the
building. No amortization of this premium has been recorded to date, and the full amount remains in the
Prepaid Insurance account.
g. Signed a 10-year lease for a new warehouse; the closing costs of P12,000 paid on July 1, 20x1, effective
date of lease, was charged to Rent Expense.
Step by step
Solved in 2 steps with 3 images
