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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 didn't 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

cristina14
Jul 9, 2010, 12:11 AM
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jellohello
Oct 17, 2011, 02:30 PM
Shut up

powell1947
Jun 13, 2012, 07:29 PM
Debit cash.

paraclete
Jun 13, 2012, 08:41 PM
Obvious some people aren't here to solve their problems

omone
Apr 22, 2013, 05:41 AM
Prepaid insurance is a debit balance because it is an asset to u who holds the insurance policy. But it is a liability to the insurance coy which means is a credit balance to d insurance coy because the cash received for the insurance policy have to be provided back to u in future in case of any risk u suffered.