WebHence, an adjusting entry is necessary to. recognize the insurance expense for 2 months by debiting it and. decreasing the balance of Prepaid Insurance by crediting it. … WebThe adjusting entry for rent earned that is currently recorded in the unearned rent account is a. Unearned Rent, debit; Rent Revenue, credit b. Rent Revenue, debit; Unearned Rent, credit c. Unearned Rent, debit; Prepaid Rent, credit d. Rent Expense, debit; Unearned Rent, credit ANS: A DIF: Moderate OBJ: 03-02
Journal Entry for Prepaid Expenses (With Examples)
WebOct 7, 2024 · For example, if you take out a loan from the bank on July 1 for $10,000 with 4% interest, you will need to make an adjusting entry at the end of the year reflecting the accrued expense of your interest so far. December 31, 2024. Debit: Credit: Accrued expense - loan interest x 6 months: $200. Accounts Payable: $200. WebPrepaid rent example. For example, on December 28, 2024, the company ABC makes an advance payment of $5,000 to use a rental facility for two months in January and February 2024 for its business operation. In this case, the company ABC needs to make the prepaid … Likewise, the adjusting entry at the end of the period is necessary for the company … The company can make the unearned revenue journal entry by debiting the … Zero Interest Bonds Formula Example Journal Entry Zero Interest Bonds Zero … Your name. Your email. Subject. Your message (optional) Categories. Auditing; … Disclaimer for Accountinguide If you require any more information or have any … friends season 8 matthew perry
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WebThe company will pass this adjusting journal entry Adjusting Journal Entry Adjusting Entries in Journal is a journal entry made by a company at the end of any accounting … WebMay 14, 2024 · Adjusting entries are journal entries recorded at the end of an accounting period to adjust income and expense accounts so that they comply with the accrual concept of accounting. ... Prepaid rent of $36,000 was paid … WebAs you perform your monthly adjustments, you move the paid rent to your cash account. Apply a credit for rent to your cash account. For example, if the tenant paid $8,400 rent for a year upon moving into the property, enter a credit for $700. Enter a debit in your prepaid rent account in the same amount that you credited to your cash account ... fbi academy ring