WebNov 6, 2024 · The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. These are both asset accounts and do not increase or decrease a company’s … WebAug 29, 2024 · To reflect this, you will credit the Prepaid Rent for the amount of one month’s rent or $6,400 of prepaid rent divided by 4 months, which gives us $1,600. Now, the net …
Why would Prepaid Insurance have a credit balance?
WebFeb 29, 2024 · The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. These are both asset accounts and do not increase or decrease a company’s … WebDec 6, 2024 · The pre paid rent account is a balance sheet account shown under the heading of current assets. Credit – What went out of the business Cash went out of the business … bodily injury liability best deal
The transactions completed by PS Music during June 2024 were …
WebOct 14, 2024 · Normal Balance and the Accounting Equation. This can be developed into the expanded accounting equation as follows. Assets + Expenses + Dividends + Losses = Liabilities + Capital + Revenue + Gains. … The two most common uses of prepaid expenses are rent and insurance. 1. Prepaid rentis rent paid in advance of the rental period. The journal entries for prepaid rent are as follows: Initial journal entry for prepaid rent: Adjusting journal entry as the prepaid rent expires: 2.Prepaid insuranceis insurance paid in advance and … See more We will look at two examples of prepaid expenses: Company A signs a one-year lease on a warehouse for $10,000 a month. The landlord requires that Company A … See more The initial journal entry for a prepaid expense does not affect a company’s financial statements. For example, refer to the first example of prepaid rent. The … See more Thank you for reading CFI’s guide to Prepaid Expenses. To keep learning and advancing your career, the following CFI resources will be helpful: 1. Cost Behavior … See more WebDebit balance of $3,600. c. Credit balance of $3,600. d. Debit balance of $10,000. b. Debit balance of $3,600. On August 1, 2016, XYZ Company took out a three-year bank loan for $30,000. The loan has an annual interest rate of 10%. What is the adjusting entry to record the accrued interest expense on December 31, 2016 (year-end)? clockwork training