Dark Inc. paid P72,000 to renew the only insurance policy for three years on March 1, 2021, the effective date of the policy. On March 31, 2021, the unadjusted trial balance showed a balance of P3,000 for prepaid insurance and P72,000 for insurance expense. What amount should be reported for insurance expense for the three months ended March 31, 2021? a. 3,000 b. 4,000 c. 5,000 d. 2,000
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Dark Inc. paid P72,000 to renew the only insurance policy for three years on March 1, 2021, the effective date of the policy.
On March 31, 2021, the unadjusted
What amount should be reported for insurance expense for the three months ended March 31, 2021?
a. 3,000
b. 4,000
c. 5,000
d. 2,000
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- On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.AAA Insurance Company issues one year, motor/vehicle insurance for a total premium of P15,000. If it was issued on January 1, 2019, How much is the earned portion for the month ended January 31, 2019? How much is the earned portion for the month ended December 31, 2019? How much is the unearned portion for the month ended January 31, 2019? How much is the unearned portion for the month ended December 31, 2019? How much is the provision for unearned premium on December 31, 2019?On July 10, 2022, FDNACCT Services received from client a 60-day, 12%, P148,000 note for services rendered. Unfortunately, the client dishonored the note on maturity date. At what amount should Interest Income account be credited on maturity date?
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- The following information is related to Sunglow Solar Ltd: • Sales for the year ended 30 June 2019 was $1,200,000 • Provision for warranties before adjustment was $36,000 At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date. On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd. Required: a) Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level. b) Record the payment of the warranty claim on 16 September 2019 in general journal formaOn September 1, 2019, Melanie Corp. borrowed $101,000 in cash and executed a 6-percent, interest-bearing note payable. Both the principle and interest are due on August 31, 2020. Assume that the correct adjusting entry was submitted on December 31, 2019, and that no more adjusting entries were made in 2020. What journal entry would need to be made in order to pay the debt on August 31, 2020? Multiple Options Interest is due 2,020 Payable Notes 101,000 Cash 103,020 Payable Notes 101,000 6,060 in interest costs 107,060 in money 6,060 in interest costs, 6,060 in cash Cost of interest: $4,040 Interest is due 2,020 Payable Notes 101,00 Cash 107,060The following information is related to Sunglow Solar Ltd: • Sales for the year ended 30 June 2019 was $1,200,000 • Provision for warranties before adjustment was $36,000 At 30 June 2019, Sunglow Solar Ltd. adjusted its Provision for Warranties so that it would be equal to 4% of sales for the year ended on that date. On 16 September 2019, a successful claim for warranty on faulty goods to the cost of $700 was made on Sunglow Solar Ltd. Required: a) Prepare the general journal entry at 30 June 2019 to adjust the Provision for Warranties to the required level. b) Record the payment of the warranty claim on 16 September 2019 in general journal format.