Prepaid insurance used journal entry
WebThe prepaid advertising represents a six-month contract. Record the advertising expense for one month. The computer supplies on hand total $145.Compare with the amount in the Computer Supplies account to determine how much of the account has been used and then record the expense. Web1 Cash A/C Dr 57,500 Photography Equipment Dr 32,500 To Capital A/C 90,000 (Being cash and asset - equipment introduced in the business) 2 Insurance A/C Dr 1,500 Insurance Prepaid A/C Dr 1,500 To Cash A/C 3,000 (Being cash paid for insurance policy purchased for 2 years) 3 Accounts Receivable A/C Dr 10,000 To Services Income A/C 10,000 (Being …
Prepaid insurance used journal entry
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WebAnswer to Can you please confirm if the journal entries on the left are... Literature Notes ... Insurance Expense $ 2,700.00 Supplies 2,800 time in year 19 Prepaid ... Furniture and fixtures $ 1,200.00 =12000/10 Prepaid Insurance 3,600 25 Accumulated Depreciation: Computer Equipment $ 700.00 =3500/5 Storefront Sign 2,700 26 To record the ... WebDec 8, 2024 · The initial entry is a debit of $12,000 to the prepaid insurance (asset) account, and a credit of $12,000 to the cash (asset) account. In each successive month for the …
WebMay 18, 2024 · Step 2: Recording accrued expenses. Payroll is the most common expense that will need an adjusting entry at the end of the month, particularly if you pay your employees bi-weekly. Any hours worked ... WebEconomics (/ ˌ ɛ k ə ˈ n ɒ m ɪ k s, ˌ iː k ə-/) is a social science that studies the production, distribution, and consumption of goods and services.. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes what's viewed as basic elements in the economy, including individual agents and markets, …
WebMay 12, 2024 · Both of these actions should be governed by a formal accounting policy that states the threshold at which prepaid expenses are to be charged to expense. Example of Prepaid Expenses Accounting. A company pays $60,000 in advance for directors and officers liability insurance for the upcoming year. The journal entry is: WebIn this case, the company ABC can record the prepaid insurance of $6,000 on December 18, 2024, with the journal entry below: Account. Debit. Credit. Prepaid insurance. 6,000. Cash. …
WebThe initial entry is a prepaid insurance journal entry debit of $12,000 to the prepaid insurance account, and a credit of $12,000 to the cash account. In each successive …
WebJournal Entries. Companies use two sets of journal entries to record the insurance-related transactions, involving both prepaid insurance and expired insurance. When companies … dog breeds like shih tzuWebOct 6, 2024 · The two most common uses of prepaid expenses are rent and insurance. 1. Prepaid rent is rent paid in advance of the rental period. The journal entries for prepaid … dog broke nailWebModule 3 Financial Statements I Discussion: Create a journal entry and a T-Account entry for each of the following. Expert Help. Study Resources. Log in Join. University of Alabama, Birmingham. HCM. ... Prepaid I Accounts Debit Credit $80,000 Cash $80,000 Prepaid Insurance $80,000 10. December 31. At year end, ... dog broke a nailWeb10 Adjusting Entry – Examples. In a periodic inventory system, an adjusting entry is used to determine the cost of goods sold expense. This entry is not necessary for a company using perpetual inventory. A third classification of adjusting entry occurs where the exact amount of an expense cannot easily be determined. dog broke his nailWebHence, an adjusting entry is necessary to. recognize the insurance expense for 2 months by debiting it and. decreasing the balance of Prepaid Insurance by crediting it. SLIDESMANIA. f Example 2. On September 1, 2024, X Co. paid a one-year advance rent for. 30,000. Give the Adjusting Journal Entry on Dec. 31, 2024. dog brickWebJun 29, 2024 · At the end of each accounting period, a journal entry is posted for the expense incurred over that period, according to the schedule. This journal entry credits … dog btuhWebPrepaid expenses are recorded in the general ledger as a prepaid asset under current assets. The full value of the prepaid expense is recorded as a debit to the asset account and as a credit to the cash account. Each month, as a portion of the amortized prepaid expense is applied, an adjusting journal entry is made as a credit to the asset ... dog broken paw