Kamil's accounting period is 1 January to 31 December every year. On 1 July 2018 he bought a car and paid road tax of $100 and insurance premium of $240 during the year. Out of the amounts paid, he had paid $60 worth of the road tax and $100 of the insurance premium for the financial year 2019. TASKS: 

a. How much is amount of the expenses to be shown in the income statement for the year ended 31 December 2018? 

b. How much is the total expenses prepaid for the year ended 31 December 2018? 

c. Show how the Income Statement and Statement of Financial Position are affected as at 31 December 2018.

Answer rating: 100% (QA)

a To determine the amount of expenses to be shown in the income statement for the year ended 31 Dece... View the full answer