The Account Type and Normal Balance of Prepaid Expense

Refer to the first example. The normal balance side of SUPPLIES.

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Recall that prepaid expenses are considered an asset because they provide future economic benefits to the company.

. The type of account and normal balance of prepaid insurance is is a tool to reduce your risks. CR and type of account assets liability equity revenue expense and contra equity for each item. The normal balance side of SUPPLIES.

3 - Can a credit entry be described as a generally. The normal balance for revenues and expenses is a credit. The normal balance side of PREPAID INSURANCE.

The normal balance side of ACCOUNTS PAYABLE--OFFICEMAX. Asset Current Asset coupled with accounts receivable Increase with Credit Decrease with Debit. Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet.

The normal balance side of ACCOUNTS RECEIVABLE--SAM ERICKSON. Accounts payable is a liability on the right side of the. The normal balance side of ACCOUNTS PAYABLE--STAPLES.

So you need to record the amount as a prepaid expense. The adjusting journal entry for a prepaid expense however does affect both a companys income statement and balance sheet. A normal balance is the expectation that a particular type of account will have either a debit or a credit balance based on its classification within the chart of accounts.

Assets expenses and dividends are increased by debits. The account type and normal balance of Prepaid Expense would be. The normal balance side of ACCOUNTS RECEIVABLE--SAM ERICKSON.

The account type and normal balance of Prepaid Expense are arrow_forward Identify the Normal Balance DR. Allowance for Doubtful Accounts. Prepaid Expenses and Accounts Payable increased respectively by.

Asked Sep 22 2015 in Business by AxeViro. The following adjusting journal entry found in the journal is missing an explanation. Example and journal entries provided.

You prepay 9000 of rent for six months. The normal balance side of JENNIE EWERT CAPITAL. The account type and normal balance of Prepaid Expense is O expense debit revenue credit liability credit Oasset debit.

Using accrual accounting revenue is recorded and reported only when the services are rendered without regard to when cash is received The account type and normal balance of prepaid expense is asset debit The type of account and normal balance of prepaid insurance is asset debit. Accounts Type of Account Normal Balance. Prepayments or prepaid expenses are one of the four main balance day adjustments that an accounting student needs to learn in their progress through any.

Increase with Debit Decrease with Credit. These are both asset accounts and do not increase or decrease a companys balance sheet. 3 - What does an accounts normal balance indicate.

The normal balance side of ACCOUNTS PAYABLE--OFFICEMAX. A It is an expense account and has a debit balance. You paid for the space but you have not used it yet.

When the asset is eventually consumed it is charged to expense. Depending on the chosen program you can partially or completely protect yourself from unforeseen expenses. 3 - Explain what a T-account is and what purpose it.

If consumed over multiple periods there may be a series of corresponding charges to expense. First debit the Prepaid Expense account to show an increase in assets. The type of account and normal balance of Prepaid Insurance is a.

Select the best explanation for the entry. The normal balance side of PREPAID INSURANCE. What type of account is Prepaid Rent and what is its normal balance.

Account Type Debit Credit. Normal Balance Credit Contra. This problem has been solved.

A prepaid expense is an expenditure paid for in one accounting period but for which the underlying asset will not be consumed until a future period. The account type and normal balance of Unearned Revenue would be. The normal balance side of JENNIE EWERT CAPITAL.

The entry to adjust the accounts for salaries accrued at the end of the accounting period is. Also credit the Cash account to show the loss of cash. And if the accident insurance event occurs the insurance company will bear all or all of the costs in full or in part.

3 - What types of accounts are increased with a. 3 - What is an unearned account. Which type of account is prepaid expenses.

55 rows Accounts payable normal balance. 3 - What types of accounts are increased with a debit. See the answer See.

Definition of Prepaid Expenses. B It is a liability account and has a credit balance. Accounts Receivable and Inventories decreased by 12000 and 35000 respectively.

The normal balance side of ACCOUNTS PAYABLE--STAPLES. The account type and normal balance of prepaid. The type of account and normal balance of prepaid insurance is a current asset and debit respectively.

The account type and normal balance of Prepaid Expense would be a. It is possible for an account expected to have a normal balance as a debit to actually have a credit balance and vice versa but these situations should be in the minority. The net income reported on the income statement for the current year was 245000.

What type of account.

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