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-   -   Journal entry for prepaid insurance? (https://www.askmehelpdesk.com/showthread.php?t=583027)

  • Jun 20, 2011, 11:46 AM
    AQADIR1
    Journal entry for prepaid insurance?
    Prepaid Insurance: 3,600
    Insurance expires at the rate of $344 per month.
  • Jun 20, 2011, 11:56 AM
    pready

    When you purchase the insurance the journal entry will be:
    Debit Prepaid Insurance for the amount paid
    Credit Cash for the amount paid

    To record the expired insurance the journal entry will be:
    Debit Insurance Expense for the amount of insurance expired
    Credit Prepaid Insurnance for the amount of insurance expired

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