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: prepayments
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...
Today's accounting tutorial will look at prepayments, which occur when an expense or income is paid or received before contract obligations are fulfilled. This tutorial will be looking at the...