Question - A Belgian food distributor reported ending balances in Prepayments of €38.4 million, €32.3 million, and €52.6 million for the years ended December 31, 2012, 2011, and 2010, respectively. Assume that Prepayments pertain to insurance premiums on warehouses and merchandise. During each of the three years, the firm paid insurance premiums of €62.5 million. The firm follows IFRS and reports its results in millions of euros (€).
Round your answers to one decimal place, if necessary.
a. What journal entries did the food distributor make in each of the three years to recognize prepayments? Enter your answer in millions.
b. What journal entries did the firm make in 2011 and 2012 to recognize insurance on its warehouse and inventory? Enter your answer in millions, rounded to one decimal place.