Chapter 1 Problem 1-18
2008
1. Cash 3,600,000
Sales 3,600,000
2. Premiums 390,000
Cash 390,000
3. Cash (5,000 x 10) 50,000
Premium expense (5,000 x 40) 200,000
Premiums (5,000 x 50) 250,000
4. Premium expense (5,000 x 20) 100,000
Cash 100,000
5. Premium expense (2,000 x 60) 120,000
Estimated premiums payable 120,000
2009
1. Estimated premiums payable 120,000
Premium expense 120,000
Reversing entry.
Cash 4,200,000
Sales 4,200,000
2. Premiums 580,000
Cash 580,000
3. Cash (9,000 x 10) 90,000
Premium expense (9,000 x 40) 360,000
Premiums (9,000 x 50) 450,000
4. Premium expense (9,000 x 20) 180,000
Cash 180,000
5. Premium expense (3,000 x 60) 180,000
Estimated premiums payable 180,000
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