Question
On 18 May KPMG Ltd paid $4125 cash for a 12-month fire insurance policy including 10% GST. Which of the following is the general journal
On 18 May KPMG Ltd paid $4125 cash for a 12-month fire insurance policy including 10% GST. Which of the following is the general journal entry to record the transaction? Select one: DR Prepaid insurance $3750; DR GST payable $375; CR Cash $4125. DR Insurance expense $3750; DR GST payable $375; CR Prepaid insurance $4125. DR Prepaid insurance $3750; DR GST receivable $375; CR Cash $4125. DR Cash $4125, CR Prepaid Insurance $4125.
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
16th edition
978-0078111044
