Question
The following transactions pertained to DEF Tracking Services for the year ending December 31, 2019: a. Paid P45,000 for a two-year earthquake insurance policy to
The following transactions pertained to DEF Tracking Services for the year ending December 31, 2019:
a. Paid P45,000 for a two-year earthquake insurance policy to commence on March 1. The amount of premium was debited to Insurance Expense.
b. Paid P60,000 for a two-year earthquake insurance policy to commence on April 1. The amount of premium was debited to Prepaid Insurance.
c. Received an P77,400 cash advance for a contract to provide services in the future. The contract required a three-year commitment, starting July 1. The amount received was credited to Unearned Service Revenue.
d. Received an P77,400 cash advance for a contract to provide services in the future. The contract required a three-year commitment, starting August 1. The amount received was credited to Service Revenue.
Required:
Prepare the original, adjusting entries and solutions.
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Payroll Accounting 2019
Authors: Jeanette Landin, Paulette Schirmer
5th edition
125991707X, 978-1259917073
