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The normal balance of unexpired insurance, which is classified as an asset on the balance sheet, is a debit balance. This reflects the prepaid portion of insurance premiums that have not yet been expensed. As the insurance coverage is consumed over time, the expense is recognized, reducing the asset balance accordingly.
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Is unexpired insurance an asset?
Yes. Unexpired insurance, or prepaid insurance, represents value to the business since it has utility and is owned by the business (the company has claim to the policy). Therefore by definition, unexpired insurance is an asset.
What is the proper adjusting entry based on a prepaid insurance account balance before adjustment of 14000 and unexpired insurance of 3000 for the fiscal year ending on April 30?
To adjust the prepaid insurance account, you need to recognize the amount of insurance that has expired during the fiscal year. Starting with a prepaid insurance balance of $14,000 and an unexpired insurance amount of $3,000, the expired insurance is $14,000 - $3,000 = $11,000. The proper adjusting entry would be a debit to Insurance Expense for $11,000 and a credit to Prepaid Insurance for $11,000.
The unexpired insurance at the end of the fiscal period represents?
Unexpired insurance at the end of fiscal year is that amount of insurance paid in advance but part of which is not consumed during fiscal year.
What is the normal balance of a prepaid insurance account?
Debit.
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
Is unexpired insurance an asset?
Yes. Unexpired insurance, or prepaid insurance, represents value to the business since it has utility and is owned by the business (the company has claim to the policy). Therefore by definition, unexpired insurance is an asset.
What is the proper adjusting entry based on a prepaid insurance account balance before adjustment of 14000 and unexpired insurance of 3000 for the fiscal year ending on April 30?
To adjust the prepaid insurance account, you need to recognize the amount of insurance that has expired during the fiscal year. Starting with a prepaid insurance balance of $14,000 and an unexpired insurance amount of $3,000, the expired insurance is $14,000 - $3,000 = $11,000. The proper adjusting entry would be a debit to Insurance Expense for $11,000 and a credit to Prepaid Insurance for $11,000.
The unexpired insurance at the end of the fiscal period represents?
Unexpired insurance at the end of fiscal year is that amount of insurance paid in advance but part of which is not consumed during fiscal year.
What is the normal balance of a prepaid insurance account?
Debit.
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
Unexpired expense should write in income statement or balance sheets?
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
What is unexpired expense?
those expenses which have been paid in advance and whose benefit will be available in future are called unexpired or prepaid expenses. e.g. insurance premium
How to calculate expired and unexpired prepaid insurance at the end of a year?
In case of some expense u might have seen advance payment is done. So as to comply with the terms of agreement or it can befor any other reason too.And this advance is shown in the asset side of balance sheet.Now,in case of insurance the same thing is happening.For example:- a ltd. F.y begins from 1-4-10 to 31-3-11. A ltd. Purchases a fixed asset on 1-2-11. Now a ltd. Wants to get this fixed asset insured and minimum insurance period as per the insurance policy is 1 year. So here the insurance period willbegin from 1-2-11 to 28-2-12.As per accrual basis of accounting expenses which pretain to a particular year are are to be shown in the p/l of that year. And rest are shown as prepaid expense (in case of insurance termed as , unexpired insurance)now coming back to a ltd. Let us suppose that payment made is = rs. 12000.Calculation of expired and unexpired expense.Total insurance expense paid = 12000insurance expense of single = 12000/12monthexpired insurance = 1000*2 (for the month of feb and march 2011)and rest of the amount is unexpired insurance because the period to which it pertains is of next f.y. Hence in the b/s of 10-11 insurance amount of rs 10000 will be shown as unexpired insurance.And yes one thing more. There is no such term as unexpired prepaid insurance. Either u call it prepaid insurance or unexpired insurance.Hope i solved ur query.
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 Unexpired insurance for the fiscal period represents asset expense?
Unexpired insurance for the fiscal period is considered an asset, specifically a prepaid expense, rather than an expense. This is because it represents a payment made for insurance coverage that extends beyond the current accounting period, providing future economic benefits. As time passes and the coverage period elapses, the prepaid insurance will then be recognized as an expense in the income statement.
Unexpired insurance at the end of the fiscal period represents is it an accured asset liability expense or deferred expense?
deferred nexpense
What will be the journal entry for unexpired rent?
debit unexpired rentcredit prepaid rent
