The journal entries required for the transaction include an initial debit of $1,200 to a "Prepaid Auto Insurance" account, as well as a $1,200 credit to cash for the full payment. For the first month of the policy, a $200 credit is made to the "Prepaid Auto Insurance" account and ...
Journalentry_英语学习_外语学习_教育专区 标红的部分分录不确定是否完全正确 A 8.The company purchases land by paying half in cash and signing a note payable for the other C
The entry for prepaid expenses (like the one above) would be: Dr Prepaid Insurance (asset account) 10000 Cr Bank 10000 The Prepaid Insurance account is actually an asset account. All prepayments are assets. This is because they are like debtors - as long as we've paid the insurance in ad...
Adjusting entries always involve a balance sheet account (Interest Payable, Prepaid Insurance,Accounts Receivable, etc.) and income statement account (InterestExpense, Insurance Expense, Service Revenues, etc.). Entries are made with thematching principleto matchrevenueand expenses in the period in whic...
An adjusting journal entry involves anincome statementaccount (revenue or expense) along with abalance sheetaccount (asset or liability). It typically relates to the balance sheet accounts for accumulated depreciation,allowance for doubtful accounts,accrued expenses,accrued income,prepaid expenses,deferred ...
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...
Prepaid Insurance 300b) Assets- O, Liabilities- N/A Equity- O, NI- Oc) Prepaid/Deferred Expense Unearned/Deferred Revenues original entry involves recording/receiving a payment for a service you have not yet performed/completed; i.e. unearned rent, unearned service revenue; debit cash and ...
10 Tanner withdrew $6,200 cash from the company for personal use. 11 The company purchased $880 of additional office supplies Note : = journal entry has been entered Record entry Clear entry View transaction list Х . Pilt Muu LUU IMMER VI month p...
Prepaid expenses are payments in cash for assets that haven’t been used yet. Think of insurance. It protects a company from possible losses, like fire or theft, which haven’t happened yet. Unearned revenue is cash received before the product or service is provided. Take your yearly gym me...
Prepaid expenses are payments in cash for assets that haven’t been used yet. Think of insurance. It protects a company from possible losses, like fire or theft, which haven’t happened yet. Unearned revenue is cash received before the product or service is provided. Take your yearly gym me...