Jolo Company purchased a building on August 1, 2017 for P2,960,000 plus prepaid insurance for one year P12,000. The building has an estimated useful life of ten years and a P200,000 residual value. Required: a. Give the entry for the purchase of the building. b. Give the entry to record the payment for prepaid insurance. c. Give the entry to adjust for depreciation on December 31, 2017. d. Give the entry to adjust for expired insurance on December 31, 2017

Jolo Company purchased a building on August 1, 2017 for P2,960,000 plus prepaid insurance for one year P12,000. The building has an estimated useful life of ten years and a P200,000 residual value. Required: a. Give the entry for the purchase of the building. b. Give the entry to record the payment for prepaid insurance. c. Give the entry to adjust for depreciation on December 31, 2017. d. Give the entry to adjust for expired insurance on December 31, 2017

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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