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Please can someone explain(detailed) this question to me.
Details of Bartlett’s insurance policy are as below:
Premium for year ended 31 March 20X6 paid April 20X5 $10800
Premium for year ended 31 March 20X7 paid April 20X6 $12000
What figures should be included in the company’s financial statements for the year ended 30 June 20X6?
Income statement? Balance sheet?@gyanmichael
Financial year is 1 July 20X5 – 30 June 20X6
In the income statement next insuarance expenses should appear: $11100
1 July 20X5 – 31 March 20X6: 9/12 * $10800 = $8100
1 April 20X6 – 30 June 20×6: 3/12 * $12000 = $3000In the balance sheet you will have $9000 prepayment for next financial year ($12000 – $3000)
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I agree with Sangria9 because after doing my calculation, i got d same answer.
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