0
Prepaid insurance is that amount which is paid in advance and no benefit has taken yet that's why it is current asset for business.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
Does prepaid insurance carry a credit or debit balance?
Prepaid insurance is amount paid in advance that's why it is an asset of business and like all other assets accounts it also has debit balance as normal balance.
Is prepaid insurance a debit or credit?
Debit
A balance of a prepaid expence account is normally DEBIT OR CREdit?
Prepaid Expenses would normally have a debit balance.
What is the normal balance of a prepaid insurance account?
Debit.
Is a decrease in prepaid rent a debit or a credit?
Prepaid Rent is an asset, therefore to decrease the asset (or use up the rent) a decrease would be a credit. Assets generally maintain a debit balance, which means to increase the balance we debit and to decrease the balance we credit.
Does prepaid insurance carry a credit or debit balance?
Prepaid insurance is amount paid in advance that's why it is an asset of business and like all other assets accounts it also has debit balance as normal balance.
Is prepaid insurance a debit or credit?
Debit
A balance of a prepaid expence account is normally DEBIT OR CREdit?
Prepaid Expenses would normally have a debit balance.
What is the normal balance of a prepaid insurance account?
Debit.
Is a decrease in prepaid rent a debit or a credit?
Prepaid Rent is an asset, therefore to decrease the asset (or use up the rent) a decrease would be a credit. Assets generally maintain a debit balance, which means to increase the balance we debit and to decrease the balance we credit.
What is debited and credited in adjusting entry for prepaid insurance?
[Debit] Prepaid Insurance [Credit] Cash / bank
Is prepaid insutance debit or credit?
Prepaid insurance is that amount the payment of which is done in advance but benefit has not yet taken by company so it is same like current asset of business and like all other current assets of business it’s balance is also debit balance.
What is the proper adjusting entry at April 30 the end of the fiscal year based on a prepaid insurance account balance before adjustment 16000 and unexpired amounts per analysis of policies 6000?
debit insurance expense 10000 credit prepaid insurance 10000
Paid 11520 for six months insurance premium what will be the journal entry?
debit prepaid insurance 11520credit cash 11520Debit Insurance Expense 1,920 Debit Prepaid Expenses 9,600 Credit Cash 11,520 This assumes the payment is made in the first month of coverage. If the payment is made before the coverage begins, the entire amount would be posted to Prepaid Expenses. If the payment was made after the coverage began (for example, in the second month of coverage), you would post the remaining number of months times 1,920 to Prepaid and the balance to Insurance Expense.
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???
Is prepaid accounts a debit or credit?
It's a debit
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.
