On the first day of Month 1, a business had prepaid insurance of $10,000. On the...

 

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On the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8, it paid, in full, the annual insurance invoice of $36,000, to cover the following year. What is the amount charged in the income statement and the prepayment shown in the statement of financial position at the year end? IS $ 5,000 22,000 25,000 36,000 A. دن نه نه B. C. D. SFP$ 24,000 23,000 21,000 15,000 On the first day of Month 1, a business had prepaid insurance of $10,000. On the first day of Month 8, it paid, in full, the annual insurance invoice of $36,000, to cover the following year. What is the amount charged in the income statement and the prepayment shown in the statement of financial position at the year end? IS $ 5,000 22,000 25,000 36,000 A. دن نه نه B. C. D. SFP$ 24,000 23,000 21,000 15,000

Answer rating: 100% (QA)

Step 1 Amt of insurance exp charged to profit loss Opening pr... View the full answer