Common prepaid expenses include prepaid rent, prepaid utilities expense, prepaid lease rentals, etc. Journal entries When a payment is made for a future expense, the following journal entry is made: Prepaid exp
Journal EntryDebitCredit Accrued Wages $20,000 Employee Payroll $20,000 Accrued Wages Example: Employee Payroll Accounting For instance, suppose a company pays its employees on a bi-weekly basis and the date on which the two-week period starts is near the end of the month of December (and...
Accounting systems use the double entry system to record journal entries. According to this system, which has been widely used for centuries, every transaction impacts at least two accounts, so a journal entry will always have a debit and a credit in the ledgers where they are recorded. All ...
A debit, on the other hand, is always on theleft side of a journal entry. It increases assets and expenses when debited. It decreases them when credited. At the end of the journal entry, the credit and debit balance shouldbe equal to each other. If they don’t, double-check because ...
When expenses are prepaid, a debit asset account is created together with the cash payment. The adjusting entry is made when the goods or services are actually consumed, which recognizes the expense and the consumption of the asset. Prepaid insurance premiums and rent are two common examples of...
Write a journal entry; Mr. Willson arranged with movers will make a delivery and set up for a new sound system and paid the delivery charge of 950. This charge will be added to the cost of the sound Compute the unit costs of production. ...
Adjustment entries are those entry which are passed just before making the income statement and balance sheet to adjust some transactions which have not been recorded yet like depreciation, prepared assets, outstanding liability, accrued income.
The cash account is credited for the amount paid to purchase the treasury stock. In addition, the applicable additional paid-in capital (APIC) or the reverse (i.e. discount on capital) must be offset by a credit or debit. If the credit side is less than the debit side, APIC is credit...
Jan 31 Miscellaneous expenses paid during the month totaled $3,470The following table shows the journal entries for the above transactions.DateAccountDebitCredit Jan 1 Cash 100,000 Common Stock 100,000 Jan 2 Prepaid Rent 36,000 Cash 36,000 Jan 3 Equipment 80,000 Cash 60,000 Notes Payab...
28th checking account balance, a couple of Reserve fund savings bank accounts, and various paid expenses from January and February. No retained earnings or equity etc. or outstanding AR or AP. I believe this should be simple but I can't remember how this opening JE is supposed to b...