When you pay back a loan or mortgage, part of each payment is interest, the rest is principal. For the interest part you would have Interest Expense, for the principal part something like Mortgage Expense.
Interest expense is part of income statement and shown there and not part of balance sheet that;s why not come in balance sheet.
An Interest Expense with a credit balance is reclassified as Interest Payable on the Balance Sheet.
A prepaid expense is an asset listed on the balance sheet.
Payment of insurance expense affects the balance sheet as it reduces the cash or bank balance which is part of balance sheet as well.
If you are doing adjusting entries, an accrued expense will affect a balance sheet account (payable) and an income statement account (expense). Such as accrued interest at the end of year would be: Interest Expense (Debit) Interest Payable (Credit)
Bad Debt Expense does not appear on the balance sheet. It is only on the income statement. Allowance for Uncollectible Accounts does appear on the balance sheet.
Electricity is not part of balance sheet rather it is an expense and it is shown in income statement of business as expense.
Tax is an expense, you do not record it in a balance sheet but on the general journal.
the sections of a balance sheet is the expense, revenues, and the sales.
true
Yes. It is an asset and assets are on the balance sheet.
Interest is part of income statement and shown in income statement and not part of balance sheet.
Rent is not a balance sheet account, it is an expense, hence an income statement account.