Payment of the entire premium

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Carreon Printing Company, owned by Carlo Carreon, acquired a two-year insurance policy on September 1, 2021. The total amount of premium paid is P62,640.

  • Assuming the payment of the entire premium was recorded by debiting Prepaid Insurance (Asset Method is used), prepare the December 31, 2021 adjusting entry.
  • Assuming the payment of the entire premium was recorded by debiting Insurance Expense (Expense Method is used), prepare the December 31, 2022 adjusting entry.

Reference no: EM133253943

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