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    ngocanh's Avatar
    ngocanh Posts: 4, Reputation: 1
    New Member
     
    #1

    Aug 9, 2008, 01:18 AM
    Prepaid expense correct entry
    I'm still not clear of how to correct the prepaid expense. Let's say... I paid 20,000 for 5 years of insurance and I charge all to expense account on the first year... the correct entry should be:

    First year...
    Debit insurance expense 4,000
    Debit prepaid insurance 16,000
    Credit R.E 20,000

    Second year... it would be normal entry?

    Debit insurance expense 4,000
    Credit prepaid expense 4,000

    ??
    ngocanh's Avatar
    ngocanh Posts: 4, Reputation: 1
    New Member
     
    #2

    Aug 9, 2008, 01:22 AM
    Does anyone response to my question? I guess that someone is reading... but no response... could you at least give me a signal that... you're answering me?
    smartme's Avatar
    smartme Posts: 5, Reputation: 1
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    #3

    Aug 9, 2008, 10:45 AM
    Yes the entry you got it correct!!

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