43+ Paid Cash For Insurance Journal Entry PNG. Accounting equation for paid cash on account journal entry. When the insurance premiums are paid in advance, they are referred to as prepaid.

Journal Entries And Trial Balance Elite Realty Acts As An Agent In Buying Selling Renting And Managing Real Estate The Unadjusted Trial Balance On March 31 2016 Follows The Following Business Transactions from content.bartleby.com

May i know the journal entry for cash paid in advance for the purchase of goods thank you. There must be an entry in the general prepaid expenses are those paid for in advance, such as insurance or rent. You would initially debit the prepaid insurance account for $2,400 and credit the cash account for $2,400.

Prepaid insurance is initially booked as an asset.

Mike is posting journal entries to the general ledger. What is the correct journal entry for the transaction paid cash for a delivery (miscellaneous expense), $25? (being insurance premium paid through cheque ). Prepaid insurance is the fee associated with an insurance contract that has been paid in advance of the coverage period.