View Full Version : Adjusting entry for depreciation expense
NEBRASKAFOREVER
Sep 15, 2008, 09:19 PM
What is the effect of the adjusting entry for depreciation expense?
blue but girl
Feb 21, 2010, 10:09 AM
Does the recording of an adjusting entry for depreciation have the same effect as recording an adjusting entry for an accured expense?
antigua
Jul 22, 2011, 09:29 PM
An accrued expense
antigua
Jul 22, 2011, 09:31 PM
A prepaid expense
pready
Jul 23, 2011, 06:32 AM
A prepaid expense is an asset because you have not incurred the expense yet.
For example when you purchase insurance you record the purchase as a prepaid expense because you have not used the insurance yet. You have purchased the insurance to be used later.
As you use the insurance you will have to transfer a portion that is in prepaid expense to your expense account.