The easiest account to figure out here is bank or cash. $4,000 salary is paid, and this means that our bank account willdecreaseby $4,000. As an asset of ours, bankincreaseson thedebit sideof our accounting equation (left), anddecreaseson thecredit side(right). So in this case we ...
1. Expense accounts have normal balances on the debit side 2. Increases in expense accounts are recorded on the debit side 3. Decrease in expense accounts are recorded on the credit side Examples of expense accounts Cost of goods sold Selling, general and administrative expenses Salaries expense ...
If a journal entry increases an expense account, the other part of the entry might___ A. increase an asset account. B. decrease the owner’s equity account. C. decrease a liability account. D. increase a liability account. 相关知识点: 试题...
An accrued expense journal entry is a year-end adjustment to record expenses that were incurred in the current year but weren't actually paid until the next year. The accrued expense journal entry debits the expense account and credits the accrued liabil
Define Accrued Expense. Accrued Expense synonyms, Accrued Expense pronunciation, Accrued Expense translation, English dictionary definition of Accrued Expense. n. 1. The act or process of accumulating; an increase. 2. Something that accumulates or increa
Journal Entry A journal entry is a record of financial transactions that documents the debit and credit balances for each account involved, and is used to maintain accurate financial records in accounting. K Known Traveler Number (KTN) A Known Traveler Number (KTN) is a unique identification code...
Because the company actually incurred 12 months’ worth of salary expenses, an adjusting journal entry is recorded at the end of the accounting period for the last month’s expense. The adjusting entry will be dated Dec. 31 and will have a debit to the salary expenses account on the income...
Prepaid expense account Dr To cash account (When the company pays prepaid expense this journal entry will be passed) After making the above journal entry another journal entry will be made at the end of period for adjustment of prepaid expense – ...
ProjectTaxItemGroupSales ProjectManagementAndAccounting/ExpenseJournalLineEntity ProjectPriceGroupID ProjectManagementAndAccounting/ExpenseJournalLineEntity AccountCompany ProjectManagementAndAccounting/ExpenseJournalLineEntity OffsetCompany ProjectManagementAndAccounting/ExpenseJourn...
The journal entry for prepaid insurance is similar to the standard entry for insurance expense. When recognizing the expense for a prepaid insurance policy, accountants will debit an expense account and credit prepaid insurance. Companies will recognize insurance expense each month using this process, ...