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    letcz's Avatar
    letcz Posts: 1, Reputation: 1
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    #1

    May 9, 2006, 12:01 PM
    Journal entry
    I need help making this journal entry. Made a down payment of 11,196.00 on 12/21/05 for liability insurance coverage from 1/1/06-1/1/07. Then making monthly payments of 5306.00 for 9 months. Do I treat this as a prepaid?

    Thanks!
    Let
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    May 9, 2006, 01:12 PM
    Yes, treat is as prepaid. So each month it costs you $6,239 (5306 + 11196/12)

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