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

    Jul 1, 2010, 12:18 PM
    What would failure to record expired amount of prepaid rent expense do?
    Failure to record the expired amount of prepaid rent expense would not effect what?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jul 2, 2010, 01:09 AM

    We aren't here to just answer your homework questions for you. Recording expired insurance means taking the expired part out of the prepaid insurance account and putting it into the expense account. If you don't make that entry, what do you think that would do?
    nita1692's Avatar
    nita1692 Posts: 1, Reputation: 1
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    #3

    Jul 26, 2013, 11:13 AM
    morgaine300 then what are you here for?? We're not here to hear you restate the question like we didn't here it the first time
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    Jul 26, 2013, 12:00 PM
    Failure to record expired Prepaids effects the balance sheet and the income statement.

    Your assets will be overstated.

    Your expenses will be understated, which means your net income will be overstated.

    With net income being overstated, your owners equity will be overstated as well.
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