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The entry to close the appropriate insurance account at the end of the accounting period is what?
Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited
A sole proprietor has incurred as expense out of his personal accont - what will be the journal entry?
The expense account will be debited and capital will be credited by the same ammount
What is an outstanding deposit?
an outstanding deposit means cash received by the company and recored in their general ledger, but bank has not yet credited the bank account
When an expense is incurred but has not been paid it should be credited where?
When an expense is incurred but not yet paid, it should be credited to an "Accounts Payable" or "Accrued Expenses" account, reflecting the obligation to pay in the future. The corresponding debit should be recorded in the relevant expense account, such as "Rent Expense" or "Utilities Expense." This ensures that the financial statements accurately represent the company's liabilities and expenses in the period they were incurred.
Is electricity debited or credited?
In accounting, electricity is typically recorded as an expense, which means it is debited when the expense is incurred. This reflects the consumption of electricity as it reduces net income. When making payments for electricity, the cash account is credited to reflect the outflow of funds.
IS ACCUMULATED DEPRECIATION INCREASED BY A DEBIT?
No, accumulated depreciation is increased by a credit, not a debit. It is a contra asset account that reduces the book value of fixed assets. When depreciation expense is recorded, it is debited to the depreciation expense account and credited to accumulated depreciation.
What is the meaning of outstanding expenses?
it is an overdue expense or in some cases a big expense...
Is rent expense a liability?
rent is an expense while outstanding rent is a liability
Does payroll Expense have a credit or debit account?
Payroll expense is a nominal account and as it is expense account so like all expense accounts it also have debit account.
What account would increase with a decrease in the inventory account?
The following will increase: Expense and Revenue Accounts Cost of Goods Sold - Credited Sales Revenue - Credited Balance Sheet Accounts Assets Accounts Accounts Receivable or Cash depending on payment terms will be debited
How do you record a refund accorrding to GAAP?
GAAP requires that refunds that are adjustments of amounts previously paid be credited to the expense account where the original purchase was posted.
Journal entry for salary advance paid?
When an employee receives an advance on pay an asset account called employee advances is debited and the cash paid out is credited. When the advance is repaid then the applicable expense accounts are debited and the advance account is credited.
