0
Dr. Prepaid expence (balance sheet)
Cr. Expense (income statement)
e.g. you have already paid $1200 insurance, but at year end still have six months to go until you have to renew your premium.
You would have expensed the full $1200 - now you need to remove the unused (prepaid) portion.
Dr. Prepaid expense $600
Cr. Insurance $600
What else can I help you with?
What are the accounting journal entries to record a prepaid inventory?
Debit prepaid inventoryCredit cash / bank
Which types of adjusting entries in accounting are natural opposites?
Prepaids and accruals. prepaid: the payment is made but the expense has not yet incurred. accrual: expense happened but not yet making payment. to illustrate how adjusting works, let's see an example: http://www.accounting7.com/content/exercise-adjusting-account-entries-accounting
What is the difference between prepaid expense and advance payment?
Prepaid expense is a payment which relevant to services which expected to delivered in the next accounting period, while advance expense is an expense paid in advance for services expected to delivered in the current accounting period.
What is the journal entry for prepaid expense when cash is not paid?
prepaid expenses are those expenses for which cash is paid in advance but if there is no cash payment then that is not prepaid expense and hence no entry required.
How do you journal entry prepay account?
Dr: Prepayment to Suppliers (In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent) Cr: Bank/Cash
What are the accounting journal entries to record a prepaid inventory?
Debit prepaid inventoryCredit cash / bank
What does an asset expense relationship exist with?
prepaid expense adjusting entries
Which types of adjusting entries in accounting are natural opposites?
Prepaids and accruals. prepaid: the payment is made but the expense has not yet incurred. accrual: expense happened but not yet making payment. to illustrate how adjusting works, let's see an example: http://www.accounting7.com/content/exercise-adjusting-account-entries-accounting
How is an accrued expense adjusted using journal entries?
Adjustment of accrued expenses means to adjust the previously recorded accruals like prepaid expenses or outstanding liabilities etc.
What is the difference between prepaid expense and advance payment?
Prepaid expense is a payment which relevant to services which expected to delivered in the next accounting period, while advance expense is an expense paid in advance for services expected to delivered in the current accounting period.
What is the journal entries of advance fore expenses?
debit prepaid expensescredit cash
What is the journal entry for prepaid expense when cash is not paid?
prepaid expenses are those expenses for which cash is paid in advance but if there is no cash payment then that is not prepaid expense and hence no entry required.
How is a prepaid expense recorded in accrual accounting?
[Debit] Prepaid Expenses xxxx [Credit] Cash / bank xxxx
What is the journal entry for medical expense?
Debit prepaid expensesCredit cash / bank
Journal entry of prepaid expenses?
these are those expenses which have been paid in advance. it means that these expenses,though not related to the current year,have been included in the expenses of current year. so in order to show a true and fair view,we have to deduct such prepaid expenses from the original expenditure as they are belonging to the next year. the entry is (for example) prepaid insurance dr to insurance a/c cr
How do you journal entry prepay account?
Dr: Prepayment to Suppliers (In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent) Cr: Bank/Cash
What is the journal entry for Advance Medical Expense?
Debit prepaid expensesCredit cash / bank
