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February 8, 2020 at 7:30 pm
Hello, you didn’t balance off the accrual or the prepayment t-account. Did I miss that they should not be balanced? is this connected with them being added to the SOPL?
March 30, 2020 at 9:57 pm
He balanced both the prepayment and accruals expenses. For the prepayment b/f $1000 he balanced it to zero by crediting the $1000 and debiting the $1000 to insurance a/c. The same procedure applys for accrual but remember accruals are a liability so the b/f is a credit so you need to debit in order to reduce it to zero and credit the insurance a/c. Hope that helps
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