Question
Master Plumbers Pty Ltd provides the following Trial Balance (Extract) at 30 June 2021. Disregard GST Chart of Account Accounts Debit Credit 580 Insurance expense
Master Plumbers Pty Ltd provides the following Trial Balance (Extract) at 30 June 2021.
Disregard GST
Chart of Account Accounts Debit Credit
580 Insurance expense $4,000
124 Prepaid insurance $8,400
Additional information:
The balance of the Prepaid insurance account is the annual (yearly) premium for insurance commencing on 1 January 2021. The insurance premium (policy) is due on 1 January every year. On 1 January 2021, there was an increase in the insurance premium (payment) for this policy.
Required:
The amount of the prepaid insurance from 1 July 2021 to 31 December 2021 represents
Group of answer choices
The future benefit of the second 6 months of the insurance policy taken out on 1 January 2021 amounting to $4,200
The future benefit of the second 6 months of the insurance policy taken out on 1 January 2021 amounting to $8,400
The present obligation of the second 6 months of the insurance policy taken out on 1 January 2021 amounting to $4,200
The present obligation of the second 6 months of the insurance policy taken out on 1 January 2021 amounting to $8,400
The loss of the future benefit of the second 6 months of the insurance policy taken out on 1 January 2021 amounting to $4,200
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Trust Me Im Almost An Auditor
Authors: Lily Hazelwood
1st Edition
1791960405, 978-1791960407
