44+ Prepaid Insurance Paid Journal Entry Gif. If so, these types of purchases require special attention in your books. Definition of prepaid insurance prepaid insurance is the portion of an insurance premium that has been paid in advance and has not expired as of the date of a company's at the end of each month, an adjusting entry of $400 will be recorded to debit insurance expense and credit prepaid insurance.
Prepaid Expenses - Examples, Accounting for a Prepaid Expense from cdn.corporatefinanceinstitute.com Prepaid insurance is an asset. The journal entry to charge this asset to expenses is prepaid insurance is a type of prepaid expense. The benefits of such expenses are not received by the company and therefore they are recorded as asset in the balance sheet.
The journal entry to charge this asset to expenses is prepaid insurance is a type of prepaid expense.
In the following practice questions, you are asked to make the correct journal entries for prepaid insurance. Debit prepaid insurance credit cash. Acquire cash by issuing common stock. Prepaid expenses are those expenses which are paid in advance by the company.
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