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Ken Garrett.
Ken Garrett.Viewing 2 posts - 1 through 2 (of 2 total)
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beticopperdoes prepaid expense has net effect of 0 on asset side of balance sheet(cash decrease and prepayment increase) and decreases liability and increases capital?
Ken GarrettA prepai expense has been paid so
Dr Expense
Cr Cash.At the end of the year the prepaid part is calculated and this decreases the expense and increases assets (prepayments).
beticopper
Ken GarrettViewing 2 posts - 1 through 2 (of 2 total)
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