Question
Farm Fresh takes out an insurance policy in respect of its fittings, motor vehicle and inventory, covering the period from 1 January 20X8 to 31
Farm Fresh takes out an insurance policy in respect of its fittings, motor vehicle and inventory, covering the period from 1 January 20X8 to 31 December 20X8. The premium of C13 200 is paid in full on 1 January 20X8.
The financial year of Farm Fresh ends on 31 March. Financial statements are being prepared for the year ended 31 March 20X8.
Required
- Prepare the accounting entry to record the payment of the insurance premium on 1 January 20X8.
- Prepare the adjusting entry at 31 March 20X8
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Understanding Financial Accounting A Guide For Non-specialists
Authors: Jimmy Winfield, Mark Graham, Taryn Miller
1st Edition
0198847270, 9780198847274
