![Quote](custom/vgo/images/misc/quote_icon.png)
Originally Posted by
morgaine300
As for the insurance... the amount PAID is not what goes on the balance sheet. The amount going into the prepaid account is what goes there. I don't have any idea how much would be in there because I don't know when the $180,000 was paid, and therefore what portion would belong to the current year (expense) and what portion goes to the next year (prepaid). As for the payable, it's a little difficult to know how it's treated when all you've said is there's an amount you don't know how to treat and no information about what it is.
Pretty vague. If you want a truly helpful answer, you need to provide us with enough info to know what's going on.
Uhm,so is the prepaid insurance still in the budgeted BS ? Because $180,000 will be paid in the 2nd quarter of next year and the prepaid amount is in current BS.
About the payable, the amount in current BS is $268,860 but the unpaid portion of credit purchase is only $203,820 (I did check this number several times and it's right), so there's an amount of $65,040 which I don't know whether we minus from the net income or let it stay in the account payable.