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View Full Version : Prepaid insurance


lave200
Mar 11, 2009, 08:46 AM
What portion of $1,200 would be at end of year, and will it fall into a retained earning in owner's equity

codyman144
Mar 11, 2009, 09:09 AM
Need more info here... What dates are the policy effective through, what date is the financial statements...

pready
Mar 11, 2009, 02:19 PM
The portion of the prepaid expense that is used will be transferred to the expense account.

Example: Debit Insurance Expense for the amount of insurance used during the period
Credit Prepaid Insurance for the same amount