Hi,

I want to know what's the effect on the basic equation of:
- salaries payable
- insurance expense
- prepaid insurance.

Thanks

Salaries payable:
increase the salaries credit (+)
increase the salaries expense (-)

Insurance expense:
decrease the cash (-)
increase insurance expense (+)

Prepaid insurance:
I don't know

When purchasing Prepaid Insurance you will increase Prepaid Insurance (a current asset) and decrease Cash (a current asset).

When posting insurance for the period you will have an increase to Insurance Expense (an expense account) and a decrease to Prepaid Insurance (a current asset).