As part of our accounting tutorial series, this article looks at the journal entry required for insurance premium paid in advance. We provide an example with all the debits and credits.
Tag: prepaid expenses
Not an uncommon question we see come up around prepaid rent is the question "is it an asset or a liability?". The answer, of course, depends on whether you are the tenant or the landlord - and its...
The type of account and normal balance of prepaid insurance is a current asset and debit respectively. In this accounting tutorial we work through an example with journal entries and a full...