prepaid expenses.

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Sir Win – Accounting Lectures

Jokes Tagalog

Stories Legit Professor

Life Lessons

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Adjusting Entries: Prepaid Expenses

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The following information are taken from the records of Rollen Faye

Bike Rentals for the period January 1 to December 31, 2021:

Supplies

Supplies bought during the period were charged to Supplies

Expense, 44,200. Supplies unused as of December amounted to

15,600.

Insurance

The prepaid insurance account showed a beginning balance of

55,000. Purchases of insurance during the year was debited to

insurance expense for 100,000. The prepaid insurance at year end

amounted to 78,000.

Advertising

A six month advertising contract was entered into by the business

which required an advance payment of 24,000 on November 1, and

was debited to advertising expense.

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