When the legal services are rendered, expense the retainer with a credit to prepaid legal and a debit to the legal expenses account. Any business contract agreements that require a deposit or ...

Prepaid expenses are first recorded in the prepaid asset account ... future. Examples of prepaid expenses include insurance, rent, leases, interest, and taxes. Prepaid expenses aren’t included ...

Melissa Horton is a financial literacy professional. She has 10+ years of experience in the financial services and planning industry. Somer G. Anderson is CPA, doctor of accounting, and an ...

Now normally, because I'm a miserable curmudgeon who doesn't ... expenses that would have been deducted under your new method. In summary, profitable businesses should examine the prepaid asset ...

Under accrual accounting, you convert part of your prepaid assets to actual expenses monthly ... To create a prepaid asset, debit the prepaid account and credit cash. For example, if you pay ...

The company moves $1,000 from prepaid expenses to the insurance expense account in ... or service hasn’t yet been delivered. Estimated taxes and insurance policies are examples.