July 1, 2021 August 20, 2021 P350,000.00 159,000.00 Prepaid Expense July 28, 2021 P78,000.00 December 31, 2021 40,000.00 The balance of prepaid expenses on January 20, 2021 is P280,000.00 What is the balance of prepared expense as of December 31, 2021?
July 1, 2021 August 20, 2021 P350,000.00 159,000.00 Prepaid Expense July 28, 2021 P78,000.00 December 31, 2021 40,000.00 The balance of prepaid expenses on January 20, 2021 is P280,000.00 What is the balance of prepared expense as of December 31, 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:IV. Case Problem 3 (15 Points):
The following are taken from the records of Monique's Bazaar for the year ended
December 30, 2021:
July 1, 2021
August 20, 2021
P350,000.00
159,000.00
Prepaid Expense
July 28, 2021
P78,000.00
December 31, 2021 40,000.00
The balance of prepaid expenses on January 20, 2021 is P280,000.00 What is the
balance of prepared expense as of December 31, 2021?
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