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It is an asset, therefore a debit (on initial recognition).
It is credited as the prepaid expenses are actually received (expensed out)
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Is prepaid insurance a debit or credit?
Debit
The account type and normal balance of prepaid expenses?
1. asset, debit 2. expense, debit 3. revenue, credit 4. liability, credit which one of them???
How should I record in Quickbooks a prepaid estimated tax payment. As a prepaid Asset and then adjust it when you pay the actual tax at the end of the year?
This type of payment is actually a pre-paid liability and not an asset. It will be adjusted out as you file your tax return, when it becomes an expense item.
What accounts will normally maintain a credit balance prepaid taxes interest income rent expense equipment?
Prepaid taxes and equipment are asset accounts, so would normally have a debit balance. Rent expense is an expense account, so would normally have a debit balance. Liability, equity, and income accounts normally have credit balances.
Is prepaid accounts a debit or credit?
It's a debit
How do you book a Prepaid Expense?
[Debit] Prepaid Expense xxxxx [Credit] cash / bank xxxxx
What is the journal entry for unused travel expenses paid in advance?
you would label it as a prepaid expense. Debit -prepaid travel expense credit- cash
How is a prepaid expense recorded in accrual accounting?
[Debit] Prepaid Expenses xxxx [Credit] Cash / bank xxxx
Is prepaid insurance a debit or credit?
Debit
The account type and normal balance of prepaid expenses?
1. asset, debit 2. expense, debit 3. revenue, credit 4. liability, credit which one of them???
How should I record in Quickbooks a prepaid estimated tax payment. As a prepaid Asset and then adjust it when you pay the actual tax at the end of the year?
This type of payment is actually a pre-paid liability and not an asset. It will be adjusted out as you file your tax return, when it becomes an expense item.
What accounts will normally maintain a credit balance prepaid taxes interest income rent expense equipment?
Prepaid taxes and equipment are asset accounts, so would normally have a debit balance. Rent expense is an expense account, so would normally have a debit balance. Liability, equity, and income accounts normally have credit balances.
Prepaid expense is debit balance or credit balance in cash flow statement?
Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
Is prepaid accounts a debit or credit?
It's a debit
Is expense debit or credit?
If revenue (income of money) is a credit, then an expense (outflow of money) is a debit.
Is Insurance Expense credit or debit?
Debit
Is rent expense a debit or credit?
debit
