Prepaid expenses are payments for goods or services that will be received in the future. These expenses are not initially recorded on a company’sincome statementfor the period when the money changes hands. Instead, prepaid expenses are first recorded on the balance sheet as an asset. But, as...
A prepaid expense is a good or service that has been paid for in advance but not yet incurred. Common examples include rent, insurance, leased equipment, advertising, legal retainers, and estimated taxes. In business, prepaid expenses are recorded as assets on the balance sheet because they rep...
A. Prepaid rent. B. Interest payable. C. Accounts payable. D. Owner, capital. Debit Balance: In accounting, debit balance refers to the positive balance on the left side of the ledger account. Generally, assets, expenses, and losses have ...
approves and pays it. In this initial step, a business accountant creates the prepaid expense as an asset by adding a debit in that amount to the balance sheet’s prepaid expenses account and reducing cash by crediting
This is because nominal accounts are used to record the revenues and expenses for the current period only, so they must be set at zero at the beginning of each new period. Answer and Explanation: The purpose of a ...
A prepaid expense (also known as prepayment) is a payment made in advance for an expense that hasn’t occurred yet. But what does it mean for an expense to occur? On the accrualbasis of accounting, expenses get recognized when they are used, consumed, utilized, or have expired, not when...
Your Prepaid Card also subscribes to the Fast Pay service which enables your direct deposits to appear in your Prepaid Card account up to two days prior to your normal pay date. Can the Prepaid Card have a negative balance? Any authorization request that is greater than the Card’s ...
Monthly service fees, reloading fees, ATM fees, inactivity fees, transaction fees, balance inquiry fees -- the list goes on. Some prepaid debit cards have been notorious for tacking on extra charges, and they can add up quickly. For example, if you’re paying a $6.95 monthly fee ...
a你知道么?我好想你 You know? I good think you[translate] aadjusting entries for prepaids involve increasing(debiting)expenses and decreasing (crediting)the prepaid asset 调整分录为prepaids介入增加(扣除)费用和减少(相信)预付的财产[translate]
Prepaid rent is shown as a current asset in the company's balance sheet. Each time the company pays rent in advance, it must debit the current assets account for the amount of the rent prepayment, then write a simultaneous credit entry to the cash account. So, if XYZ Company paid the ...