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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 trial balance showed a balance of P3,000 for prepaid insurance and P72,000 for insurance expense. What amount should be reported for prepaid insurance on March 31, 2021? a. 55,000 b. 70,000 c. 65,000 d. 60,000

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 prepaid insurance on March 31, 2021? a. 55,000 b. 70,000 c. 65,000 d. 60,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 trial balance showed a balance of P3,000 for prepaid insurance and P72,000 for insurance expense.

What amount should be reported for prepaid insurance on March 31, 2021?

a. 55,000
b. 70,000
c. 65,000
d. 60,000

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