Bookkeeping - Page 76 of 146 - Online Accounting

Why is prepaid insurance a short term asset?

Sep 17, 2020 Bookkeeping by Adam Hill

While some accounting systems can automate the amortization of the prepaid, a review of the account should occur every accounting period. For instance, a company that pays $1,000 a month for rent must credit the prepaid rent expense account for $9,00...

Journal Entry for Prepaid Insurance

Sep 17, 2020 Bookkeeping by Adam Hill

This is usually done at the end of each accounting period through an adjusting entry. As time passes, you decrease the prepaid insurance account and record insurance expense. For example, let's say your company pays $2,400 for a 1-year insurance poli...

Overhead

Sep 16, 2020 Bookkeeping by Adam Hill

Generally accepted accounting principles require businesses that use accrual basis accounting to include both direct and overhead expenses in production cost allocations. Predetermined overhead rates allow accounting employees to comply with the GAAP...

Journalizing

Sep 16, 2020 Bookkeeping by Adam Hill

In this step of the accounting cycle an accountant takes total credits and debits recorded in categorized sub-ledgers and posts them into the general ledger to be used for official accounting statements. With the abundance of technological advancemen...

Can I cash my payroll check before the date?

Sep 16, 2020 Bookkeeping by Adam Hill

Banks (in the U.S. at least) typically pay on postdated checks unless the checking account owner specifically instructed them not to beforehand. Most people don’t do this, in part because of the additional fees to monitor the account and prevent paym...