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What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
How do you journal entry prepay account?
Dr: Prepayment to Suppliers (In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent) Cr: Bank/Cash
Account type and normal balance of prepaid expense?
asset, debit
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
Is Rent payable is recorded in accounting year?
First let me say there is no account referred to as "Rent Payable". Rent is an operating expense for a business, you have two main accounts that deal with rent. 1 is Prepaid Rent, the other is Rent Expense. Prepaid Rent is used if the company pays their rent in advance. Prepaid Rent is an Asset. For example a company pays 6 months rent in advance, the journal entry isPrepaid Rent (debit) $$$Cash (credit) $$$Each month as the rent is "used up" an adjusting entry must be made. Since the cash has already been paid the entries move the amount needed of that month from one account to another. In this case we want to move it from the asset account Prepaid Rent to the Expense account Rent Expense the entry is;Rent Expense (debit) $$$Prepaid Rent (credit) $$$As you notice since prepaid rent is an asset account it has a debit balance, therefore to "remove" the amount of rent used we must credit that amount.If the company pays their rent monthly on a cash basis the journal entry is simple and straight forward.Rent Expense (debit) $$$Cash (credit) $$$You will not see an account called "Rent Payable" as a payable account is a liability account and expense are not classified as a liability but an operating expense.
What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What account type is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What account types is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
How do you journal entry prepay account?
Dr: Prepayment to Suppliers (In Case of Expense, then "Prepaid expense" account will be debited e:g Prepaid Rent) Cr: Bank/Cash
What is the difference between prepaid unearned account?
Prepaid is that amount of expense which is paid in advance and expense not occured while unearned account is that amount where amount for services received in advance but services not provided.
Account type and normal balance of prepaid expense?
asset, debit
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
Is Rent payable is recorded in accounting year?
First let me say there is no account referred to as "Rent Payable". Rent is an operating expense for a business, you have two main accounts that deal with rent. 1 is Prepaid Rent, the other is Rent Expense. Prepaid Rent is used if the company pays their rent in advance. Prepaid Rent is an Asset. For example a company pays 6 months rent in advance, the journal entry isPrepaid Rent (debit) $$$Cash (credit) $$$Each month as the rent is "used up" an adjusting entry must be made. Since the cash has already been paid the entries move the amount needed of that month from one account to another. In this case we want to move it from the asset account Prepaid Rent to the Expense account Rent Expense the entry is;Rent Expense (debit) $$$Prepaid Rent (credit) $$$As you notice since prepaid rent is an asset account it has a debit balance, therefore to "remove" the amount of rent used we must credit that amount.If the company pays their rent monthly on a cash basis the journal entry is simple and straight forward.Rent Expense (debit) $$$Cash (credit) $$$You will not see an account called "Rent Payable" as a payable account is a liability account and expense are not classified as a liability but an operating expense.
Rent expense cost of sales?
Rent expense is considered an overhead cost, not a cost of sales since it does not directly relate to the merchandise you are selling. Any prepaid rent (such as at the beginning of the month) should receive a journal entry debit to an account called prepaid rent, and at the end of the month should be credited to rent expense. Hope this helps.
Why is prepaid rent considered an asset account?
Because it will be transferred to an expense account....debit must equal credits on the j/e
Which type of account is prepaid expenses?
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.
What is prepaid expense?
A prepaid expense is an account that a business might have to pay the traveling expenses of salesmen. The salesmen are given a certain amount for travel each week or month that can be used for meals and hotels and other travel expenses.
