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Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
What is the normal balance of a prepaid insurance account?
Debit.
Is prepaid insurance a permanent or temporary account?
it is permanent
What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
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.
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
What is the normal balance of a prepaid insurance account?
Debit.
Is prepaid insurance a permanent or temporary account?
it is permanent
What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What account type is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
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.
What type of account is Prepaid Rent?
balance sheet as a current liability until it's earned, when you transfer the amount earned to revenue.
Is Prepaid insurance expense an asset?
Yes. All prepaid items go in current assets until they are used and transferred to the profit and loss.
Can you get insurance on a prepaid phone?
Yes you can get insurance on prepaid phones.
Is prepaid insurance debit or credit on unadjusted trial balance sheet?
Prepaid insurance is recorded as a debit on the unadjusted trial balance sheet. It represents an asset, reflecting payments made in advance for insurance coverage that will benefit future periods. As time passes and the coverage is used, it is then gradually expensed, decreasing the prepaid insurance account and increasing insurance expense.
Account type and normal balance of prepaid expense?
asset, debit
Does prepaid insurance normally have a credit balance?
No, prepaid insurance typically does not have a credit balance. Instead, it usually appears as an asset on the balance sheet with a debit balance, reflecting the amount paid in advance for insurance coverage. As time passes and the coverage is used, the prepaid insurance is expensed, reducing the asset balance. A credit balance in this account would indicate an overpayment or error.
