 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Accounting for prepaid expenses
Balance for prepaid expense on 6/30 yr 12 400
Making adjusting entries the end of July How would I record this The firm paid the premium on a one year insurance polic March 1 yr 12 with coverage beginning that month. No other policy was in effect on June 30, yr 12 |
||||
|
||||
|
Some assumptions are necessary
1. the balance of the account is the amount of the insurance premium 2. there is no residual balance in the account from the previous year a premium for a policy beginning March 1 in a year ending 30 June has extinguished 1/3 of its value at 30 June leaving 2/3 prepaid Making an adjusting entry in July means you could be calculating one month's premium or five months who wrote this question? |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
I got $10,000 from my firm as relocation expense. It is possible to put this as my moving expense since I did not keep track of the spending during my move. My firm told me all this amount was non tax before but happen to put this on my W2 and withheld tax for this amount later during my first pay...
If an expense is paid for service contract for one year How the account to be journalised
How would prepaid expenses be accounted for in determining taxes and accounting for the deferred tax provision. For example, assuming rental payments are prepaid at the beginning of the year and are not yet expensed by the time taxes are accounted for- would these prepayments be taken as...
Are prepaid expenses classified as liabilities on the balance sheet? Or are they just assets that represent prepayments of future expenses?
What are prepaid expenses in regard to current assets? Are they trading securities?:eek:
View more questions Search
|
