Question
Prepayments The bookkeeper advised you that $7,392 paid to InsuranceCo on 19th July 2019 for business insurance was for the 12 months to the end
Prepayments
The bookkeeper advised you that $7,392 paid to InsuranceCo on 19th July 2019 for business insurance was for the 12 months to the end of June 2020.
You are required to make a manual journal entry to adjust the insurance expenses claimed for the month of July 2019 and the remainder($6,160+GST) to Prepayments.
Manual Journal:
- Narration: Adjust insurance payment for end of July 2019
- Date:31 July 2019
- Untick Show journal on cash basis reports
- Auto Reversing N/A
- Amounts are No Tax
- First line: Insurance
- Second Line: Prepayments
- For marking purposes, please make sure your manual journal narration is: Adjust insurance payment for end of July 2019
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Ethical Obligations and Decision Making in Accounting Text and Cases
Authors: Steven M. Mintz, Roselyn E. Morris
5th edition
1259969460, 73403997, 1260480852, 978-1259969461
