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

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

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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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.
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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 format.