On 1 October of the current year, Bourdon Company paid $396 for a two-year comprehensive insurance policy

Question:

On 1 October of the current year, Bourdon Company paid \$396 for a two-year comprehensive insurance policy on the business' building.

Required:

a Prepare the journal entry to record each of the following:

i The purchase of this insurance policy ii The adjusting entry at the end of the year (31 December).

b If the adjusting entry had not been made in (a-ii), discuss what effect this error would have on the accounts and totals listed on the income statement and balance sheet.

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Accounting Information For Business Decisions

ISBN: 9780170253703

2nd Edition

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons

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Question Posted: Mar 02, 2024 11:15 AM

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On 1 October of the current year, Bourdon Company paid $396 for a two-year comprehensive insurance policy

Question:

Step by Step Answer:

a Bourdon Company Journal Entries i Purchase of the insurance policy Date October 1 Account Prepaid ...View the full answer

Accounting Information For Business Decisions

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