Then, after a month, the company makes an adjusting entry for the insurance used. The company makes adebitto the appropriate expense account and credits the prepaid expense account to reduce theassetvalue. The monthly adjustment for Company ABC would be $12,000 divided by 12 months, or $1,...
更多“The adjustment entry for prepaid expense is to DR the prepaid account and CR the expense account.”相关的问题 第1题 Part A Directions: Read the following four texts. Answer the questions below each text by choosing A, B, C or D. (40 points) Over the last decade, demand for th...
Bookkeeping for Prepaid Rent Prepaid rent is a type of deferred expense, which is a type of asset. If a tenant pays $1,000 in rent for the month of April on April 1, that amount represents a deferred expense. To reflect this transaction on April 1, he will decrease his cash balance ...
The balance on the Prepaid Insurance account before adjustments is $36,000.00. If the balance on the Prepaid Insurance account after adjustment is $30,000.00, then: a. The Prepaid Insurance account was debited for $6,000.00. b. The Insurance Expense ...