As a small business owner, when you make a financial transaction, you record it as an entry in the ... such as taxes and insurance as a credit in the accounting journal under the respective ...

Insurance expenses are some ... administrative expense account and credit the prepaid expense for the amount of amortization recognized. This entry reduces the company's asset balance and ...

As of November 30, none of the $2,400 has expired and the entire $2,400 will be reported as prepaid insurance. But that changes once coverage begins. On December 31, an adjusting entry will show a ...

This can create an accounting entry on ... the label of prepaid expense. These prepaid expenses are those that a business uses or depletes within a year of purchase, such as insurance, rent ...