Ask Experts Questions for FREE Help!
 
Free Answers in 3 Easy Steps

Register Now		 3 Steps
 
Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 
PDA

monaliz_20
Jul 3, 2007, 07:43 AM
What is the normal balance of a prepaid insurance, debit or credit?
tickle
Jul 3, 2007, 08:03 AM
a credit
monaliz_20
Jul 3, 2007, 08:04 AM
a credit So it isn't considered as an insurance expense?
tickle
Jul 3, 2007, 08:09 AM
I have no idea, you didnt say why you were asking this question. Am I supposed to assume it is a journal entry or something like that ?
Superfly999
Jul 3, 2007, 08:55 AM
Prepaid insurance is a asset account with a debit balance. When that months (or however long the payments are set for) prepaid insurance is expired, the prepaid account is credited for 1 months rent and the insurance expense account is debited for that amount also.
jmalysh
Jul 5, 2007, 11:03 PM
What is the normal balance of a prepaid insurance, debit or credit?
It is a debit because it is an asset to your company