The Account Type and Normal Balance of Prepaid Expense

- April 20, 2022

The account type and normal balance of Prepaid Expense would be a. The side that increases is referred to as an accounts normal balance.

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. First week only 499. Solution for The account type and normal balance of Prepaid Expense are. The amount of the journal entry required to record insurance expense will be 4000 if the amount of unexpired insurance applicable to future periods is 2000.

When the asset is eventually consumed it is charged to expense. Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet. Accounts payable normal balance.

Accounts payable is a liability on the right side of the. The landlord requires that Company A pays the annual amount 120000 upfront at the beginning of the year. The account type and normal balance of Prepaid Expense is A Revenue credit B.

The net income reported on the income statement for the current year was 245000. The increase side of CASH. The initial journal entry.

The following adjusting journal entry found in the journal is missing an explanation. Income statement account and one balance sheet account. Prepayments or prepaid expenses are one of the four main balance day adjustments that an accounting student needs to learn in their progress through any.

Definition of Prepaid Expenses. The increase side of PREPAID INSURANCE. The type of account and normal balance of Prepaid Insurance is a.

A prepaid expense is an expenditure paid for in one accounting period but for which the underlying asset will not be consumed until a future period. Select the best explanation for the entry. The type of account and normal balance of Prepaid Insurance is a.

December 29 2020 No Comments. Quickly memorize the terms phrases and much more. The account type and normal balance of Prepaid Expense are arrow_forward Identify the Normal Balance DR.

If consumed over multiple periods there may be a series of corresponding charges to expense. The account type and normal balance of prepaid. A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts.

The increase side of ACCOUNTS RECEIVABLE--SAM ERICKSON. The account type and normal balance of Unearned Revenue would be. The normal balance side of REPAIRS EXPENSE.

Prepaid Expenses and Accounts Payable increased respectively by. The account type and normal balance of prepaid expense is. The account type and normal balance of Prepaid Expense is O expense debit revenue credit liability credit Oasset debit.

At year-end the balance in the prepaid insurance account prior to any adjustements is 6000. The account type and normal balance of prepaid. Start your trial now.

CR and type of account assets liability equity revenue expense and contra equity for each item. The type of account and normal balance of prepaid insurance is a current asset and debit respectively. The account type and normal balance of Prepaid Expense would be A revenue credit B expense debit C liability credit D asset debit.

The account type and normal balance of Prepaid Expense would be. Del Pilar National High School. Accounting questions and answers.

We will look at two examples of prepaid expenses. Company A signs a one-year lease on a warehouse for 10000 a month. The entry to adjust the accounts for salaries accrued at the end of the accounting period is.

Accounts Receivable and Inventories decreased by 12000 and 35000 respectively. It is possible for an account expected to have a normal balance as a debit to actually have a credit balance and vice versa but these situations should be in the minority. Which type of account is prepaid expenses.

Example and journal entries provided. One check for the net amount of the payroll is written definition cvp on the companys regular. The increase side of SUPPLIES.

Journal Entry For Prepaid Expenses With Examples Accounting Capital