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.
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.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 49P
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On September 1, 2020, Mr. Chu paid P62,940 worth of insurance premium for two years.
a. Using the Asset Method, give the
b. Using the Expense Method, give the Journal Entry on September 1, 2020 and the Adjusting Journal Entry on December 31, 2020.
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