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An analysis of B Co. unadjusted Prepaid Insurance account at December 31, 2011 revealed the following:
1) An opening balance of P28,500 for the company's comprehensive insurance policy represents the balance left of the P36,000 two years insurance premium made last year dated August 1, 2010.
2) Another insurance amounted to P58,200 representing annual insurance premium payment made September 1, 2011.
Problem 1: Journalize the adjusting entry to be made on December 31, 2011.
Problem 2: What amount should B Co. report as Insurance Expense in its Income Statement for the year ended December 31, 2011?
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