Prepare audit adjustments for the following situations you find in the records of Mabinay, Inc. which closes its accounts December 31, 2019. On September 1, 2019, paid 36 months premium of P3,600 on fire and extendedcoverage on building. No amortization of this premium has been recorded to dateand the full amount remains in the Prepaid Insurance account.f.g. Signed a 10-year lease for a new warehouse; the closing costs of P12,000 paid onJuly 1, 2019, effective date of lease, was charged to Rent Expense.h. Paid annual dues of P1,200 on September 1, 2019, to the Chamber of Commerce andcharged Dues and Subscription Expense.i. Subscribed to Building Reports on April 1, 2019, agreeing to pay equal semi-annualinstalments of P720 each. The first payment was charged to Prepaid Dues andSubscriptions and the second charged to Dues and Subscriptions Expense.j. Vacation advances were made in the amount of P6,000 on December 15, 2019, andcharged to Vacation Expense. Of this amount P3,000 applies to vacations startingJanuary 1, 2020.

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repare audit adjustments for the following situations you find in the records of Mabinay, Inc. which closes its accounts December 3

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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