Each month, an adjusting entry will be made to expense $10,000 (1/12 of the prepaid amount) to the income statement through a credit to prepaid insurance and a debit to insurance expense. In the 12th month, the final $10,000 will be fully expensed and the prepaid account will be zero...
The adjusting journal entry for a prepaid expense, however, does affect both a company’s income statement and balance sheet. Refer to the first example of prepaid rent. The adjusting entry on January 31 would result in an expense of $10,000 (rent expense) and a decrease in assets of $1...
The payment that reflects a prepaid expense will be debited in the prepaid account and then credited in the cash account. Thus, the balance sheet is balanced. Then, the accounting team will set up the amortization schedule. After each accounting period, the journal entry is posted that reflec...
Prepaid expense is not a Real Account. It is a Personal Account. Was this answer useful? Yes ReplyTaha Jan 11th, 2016 Prepaid expenses are those expenses which are paid in advance to the party. Which ideally comes under Assets side in balance sheet. Journal Entry : - PP exp A/c...
Manufacturing Account TheJournalentry to record outstanding expenses is: DateParticularsAmount (Dr.)Amount (Cr.) Expense A/cDr. To Outstanding Expense A/c (Being recording the expense for the current year outstanding) The Outstanding Expense A/c appears on the liability side of ...
Therefore, it should be recorded as a prepaid expense and allocated to expenses over the full 12 months. 如果第一个月将预付租金记为费用,则相关费用无法与使用复印机产生的收入充分匹配。因此,预付租金应记为待摊费用,在12个月的期限内分摊为费用。 Journal entries that recognize expenses related to ...
It would also be credited for the same amount in the cash account. Each month, an adjusting journal entry of $10,000 (the equivalent of one month’s rental payment) will be credited in the prepaid rent account and debited in the office rent expense account. ...
百度试题 结果1 题目An adjusting entry could be made for each of the following except: A. Prepaid expenses. B. Depreciation. C. Owner withdrawals. D. Unearned revenues. E. Accrued revenues. 相关知识点: 试题来源: 解析 A. B. D. E.反馈 收藏 ...
The journal entry to record amortization of prepaid rent is a debit to the rent expense account and a credit to the prepaid rent asset. The value of the entry is based on the amortization schedule for the period. The journal entry is made as part of the adjusting journal entries step in...
liability insurancefor the upcoming year. The company pays for the policy upfront and then, each month, makes an adjusting entry to account for the insurance expense incurred. The initial entry, where we debit the prepaid expense account and credit the account used to pay for the expense, ...