Expired Insurance Debit Or Credit
Expired Insurance Debit Or Credit. On july 1, 2013, lamis company paid $1,200 for six months of insurance coverage. Depreciation of office equipment for may is $330.
Debit insurance expense, $1,610, and credit prepaid insurance, $1,610. An examination of insurance policies shows that insurance costing $1,200 has expired during the period. A basic insurance journal entry is debit:
The Balance In The Prepaid Insurance Account, Before Adjustment At The End Of The Year, Is $9,050.
After all debits and credits are posted to the general ledger, the prepaid insurance account will have a debit balance of $550 reflecting the cost of insurance policy that has not expired. Rent expired during may is $1,600. A debit to accumulated depreciation and a credit to prepaid insurance.
Debit Insurance Expense And Credit Prepaid Insurance, $17,000.
The period for which insurance is prepaid is generally one year, but may exceed a year in certain cases. The december 31, 2017 adjusting entry is a. On july 1, the company receives a premium refund of $120 from the insurance company.
Debit Insurance Expense For The Amount Used During The Period.
On december 31, an adjusting entry will debit insurance expense for $400 (the amount that expired: A basic insurance journal entry is debit: The adjusted ending balance of prepaid insurance is 2,535.
This Means That The Debit Balance In Prepaid Insurance At December 31 Will Be $2,000 (5/6 Of The $2,400 Cost), Since This Is The Amount That Has Not Yet Expired.
On the other hand, the insurance expense account will have a debit balance of $50 reflecting the expired portion of the insurance policy during january. How can the debit of the amount take place when a debit card has expired? Journalize the adjusting entry required under each of the following alternatives for determining the amount of the adjustment:
Payments That Are Made In Advance For Insurance Services Or Coverage.
In order to bring this account to the “correct balance,” the $600 in the insurance expense account must be reduced (credited) by $550. Debit prepaid insurance and credit insurance expense, $17,000. It was taken on monday.