In finance,accrued expensesare the opposite of prepaid expenses. These are the costs of goods or services that a company consumes before it has to pay for them, such as utilities, rent, or payments to contractors or vendors. Accountants record these expenses as a current liability on the bala...
Here are the main financial transactions that adjusting journal entries are used to record at the end of a period.Prepaid expenses or unearned revenues –Prepaid expenses are goods or services that have been paid for by a company but have not been consumed yet. Insurance is a good example of...
As a startup, the business owners charged their credit card and now those expenses need to be reimbursed. I understand creating expenses and issue a check. However, I do not understand why I need to create a Journal Entry with a credit and debit transaction? Thank ...
To make an unexpired insurance journal entry, you record it in your accounting journal as a prepaid asset: $840 in the prepaid insurance asset account. You also make an $840 credit to the cash account. When December rolls around, you've used up one month of insurance with 11 months to ...
Insurance is an asset account that an entity uses as a financial protection or reimbursement against losses. It may be part of prepaid expenses...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough...
expenses to more accurately reflect your financial situation. The point is to make your accounting ledger as accurate as possible without doing any illegal tampering with the numbers. You have your initial trial balance which is the balance after your journal entries are entered. Then after your ...
12. Switch to a cheaper cell phone plan It might be time to change your cell phone plan to save some serious money. As you set out to find the best cell phone plan for your situation, you’ll want to consider network quality and whether a prepaid or postpaid plan is best for you. ...
Keep in mind that the cheapest phone plans are typically prepaid. » Learn how to compare cell phone plans Electricity, heat and water 13. Dial down your thermostat. Dropping the temperature degrees at night or when you’re away can lower your heating bill. Doing the same on your water ...
a credit to Accounts Payable a minimum of one debit to another account. The debit amount usually involves one of the following: an expense (Repairs & Maintenance Expense, Advertising Expense, Rent Expense, etc.) a prepaid asset (Prepaid Expenses, Prepaid Insurance) ...
SAP Managed Tags: SAP ERP, FIN (Finance) Is there a functionality in SAP wherein a certain prepaid expenses were incurred but subject to amortization for a certain no of periods. In this case, system will amortise automatically the actual expenses allocated to each periods. Thanks RobertKnow...