Dbase company paid p170400 on june 1 2002 for a two

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6. Dbase Company paid P170,400 on June 1, 2002, for a two-year insurance policy and recorded the entire amount as Insurance Expense. The December 31, 2002, adjusting entry is a. debit Prepaid Insurance and credit Insurance Expense, P49,700
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Practical Accounting 1 Review of the Accounting Process page 2 b. debit Insurance Expense and credit Prepaid Insurance, P49,700 c. debit Insurance Expense and credit Prepaid Insurance, P120,700 d. debit Prepaid Insurance and credit Insurance Expense, P120,700 7. The Supplies on Hand account balance at the beginning of the period was P66,000. Supplies totaling P128,250 were purchased during the period and debited to Supplies on Hand. A physical count shows P38,250 of Supplies on Hand at the end of the period. The proper journal entry at the end of the period. a. debits supplies on Hand and credits Supplies Expense for P90,000. b. debits supplies Expense and credits Supplies on Hand for P128,250. c. debits Supplies on Hand and credits Supplies Expense for P156,000. d. debits Supplies Expense and credits Supplies on Hand for P156,000. 8. Moon Company purchased equipment on November 1, 2001, by giving their supplier a 12- month, 9 percent note with a face value of P480,000. The December 31, 2001, adjusting entry is 9. On December 31 of the current year, Holmgren Company’s bookkeeper made an entry debiting Supplies Expense and crediting Supplies on Hand for P126,000. The Supplies on Hand account had a P153,000 debit balance on January 1. The December 31, balance sheet showed Supplies on Hand of P114,000. Only one purchase of supplies was made during the month, on account. The entry for that purchase was
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