Is Expired Insurance A Debit Or Credit. A basic insurance journal entry is debit: The adjusting entry to account for the expiration of prepaid insurance consists of a.
Event general journal debit credit ,_ a. A) $300 of insurance expired during may. Prepaid insurance is the amount of insurance premium which has been paid in advance in the current accounting period.
If your credit card is expiring this month, it will continue to work until the end of the month, and a new card should automatically arrive in the. Rent expired during may is $1,600. Prepaid insurance $5890 debit $1040 credit bal.
Depreciation of office equipment for may is $330. Indicate if the balance is a debit or credit. Debit insurance expense and credit prepaid insurance, $17,000.
Determine what the account balance equals. Prepaid insurance the prepaid insurance account has a $5890 debit balance at the start of the year. Prepare the journal entry to reflect expiration of the insurance as of december 31, 2013.
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. A prepaid insurance which has expired $400. On december 31, an adjusting entry will debit insurance expense for $400 (the amount that expired:
Debit insurance expense, $1,380 and credit prepaid insurance, $1,380. As the prepaid insurance expires throughout the passage of time, the company needs to transfer the prepaid insurance that has expired in the period to the insurance expense. Ending cleaning supplies inventory is $1,300.
