Unexpired Insurance Policy Journal Entry, Company a paid 10 000 as insurance premium in the month of december the insurance premium belongs to the following calendar year hence it doesn t become due until january of the next year. Prepare and post transaction and adjusting entries for insurance. K the company has three office employees who each earn 100 per day for a five day workweek that ends on friday. At the end of december the company will record this into their journal book using the below journal entry for prepaid expenses. This Unexpired Insurance Policy Journal Entry can save as free with high resolution FHD for your information and reference before execute your plan.
B the amount of unexpired insurance applicable to future periods is 6 750. When you make the unexpired Insurance Policy Journal entry in your ledger that day you list 12 000 as an asset because you haven t used it yet. 840 in the prepaid insurance asset account. Unexpired or prepaid expenses.
Adjustment entries in final accounts.
Has a december 31 fiscal year end and adjusts accounts annually. Unexpired Insurance Policy Journal Entry The income statement for the quarter ending will show an expense of 2 000 under the line item of insurance expense. When insurance is due for each quarter i e 2 000 will be subtracted from the prepaid account and is shown as an expense in the income statement for that reporting quarter. For instance when insurance premium is paid upto 31 3 2005 and if we prepare the final accounts for the year ended 31 12 2004 then the premium from 1 1 2005 to 31 3 2005 paid is unexpired or prepaid expenses. You also make an 840 credit to the cash account. When preparing the profit and loss account insurance expenses will be shown at 1 600 4 800 less 3 200 when preparing the balance sheet prepaid insurance 3 200 will be shown as a current asset. Has a december 31 fiscal year end and adjusts accounts annually. The employees were paid. 4 answers on june 1 2010 bere co. Adjusting Entry For Prepaid Expense Accountingverse Accounting Basics Expensive Accounting
Adjusting Entry For Prepaid Expense Accountingverse Accounting Basics Expensive Accounting, When preparing the profit and loss account insurance expenses will be shown at 1 600 4 800 less 3 200 when preparing the balance sheet prepaid insurance 3 200 will be shown as a current asset. When you make the unexpired Insurance Policy Journal entry in your ledger that day you list 12 000 as an asset because you haven t used it yet. At the end of december the company will record this into their journal book using the below journal entry for prepaid expenses. You also make an 840 credit to the cash account. 840 in the prepaid insurance asset account. The effect of the above journal entry would be two folds. To make an unexpired Insurance Policy Journal entry you record it in your accounting journal as a prepaid asset. At the end of the month you transfer 1 000 out of assets to an expense account because you ve used up the first month s insurance. Accounting process for prepaid or unexpired expenses. Company a paid 10 000 as insurance premium in the month of december the insurance premium belongs to the following calendar year hence it doesn t become due until january of the next year.
Prepare and post transaction and adjusting entries for insurance. 840 in the prepaid insurance asset account. Company a paid 10 000 as insurance premium in the month of december the insurance premium belongs to the following calendar year hence it doesn t become due until january of the next year. Accounting process for prepaid or unexpired expenses. At the end of the month you transfer 1 000 out of assets to an expense account because you ve used up the first month s insurance. When you make the unexpired Insurance Policy Journal entry in your ledger that day you list 12 000 as an asset because you haven t used it yet. At the end of december the company will record this into their journal book using the below journal entry for prepaid expenses. To make an unexpired Insurance Policy Journal entry you record it in your accounting journal as a prepaid asset. You also make an 840 credit to the cash account. The effect of the above journal entry would be two folds. When preparing the profit and loss account insurance expenses will be shown at 1 600 4 800 less 3 200 when preparing the balance sheet prepaid insurance 3 200 will be shown as a current asset.
4 answers on june 1 2010 bere co. When you make the unexpired Insurance Policy Journal entry in your ledger that day you list 12 000 as an asset because you haven t used it yet. At the end of december the company will record this into their journal book using the below journal entry for prepaid expenses. 840 in the prepaid insurance asset account. Company a paid 10 000 as insurance premium in the month of december the insurance premium belongs to the following calendar year hence it doesn t become due until january of the next year. The effect of the above journal entry would be two folds. At the end of the month you transfer 1 000 out of assets to an expense account because you ve used up the first month s insurance. To make an unexpired Insurance Policy Journal entry you record it in your accounting journal as a prepaid asset. When preparing the profit and loss account insurance expenses will be shown at 1 600 4 800 less 3 200 when preparing the balance sheet prepaid insurance 3 200 will be shown as a current asset. Accounting process for prepaid or unexpired expenses. You also make an 840 credit to the cash account.
