Three-year insurance premium payment, Accounting Basics

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Three-year insurance premium payment

L Company discovered that a three-year insurance premium payment of $240,000 one year ago was debited to insurance expense.

Required:

1. What action is required? Ignore taxes.

2. What action is required if the error is not discovered until 4 years after it occurred?

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Accounting Basics: Three-year insurance premium payment

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Accounting Basics: Three-year insurance premium payment

Reference No:- TGS055960

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Overall break-even point for the entire company

Q : What is total period cost for month under variable costing

Q : Gain or loss experienced by hurst in reacquiring bonds

Q : Compute the amount of gain-loss on the transfer of land

Q : Three-year insurance premium payment

Q : Land after the complete liquidation

Q : Contemplating an ad campaign-net operating income

Q : Equipments net present value

Q : Probable type of behavior that each of the costs exhibits

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Three-year insurance premium payment

Reference No:- TGS055960

Recent Questions Asked Accounting Basics

Q : Overall break-even point for the entire company

Q : What is total period cost for month under variable costing

Q : Gain or loss experienced by hurst in reacquiring bonds

Q : Compute the amount of gain-loss on the transfer of land

Q : Three-year insurance premium payment

Q : Land after the complete liquidation

Q : Contemplating an ad campaign-net operating income

Q : Equipments net present value

Q : Probable type of behavior that each of the costs exhibits

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