أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
As the prepaid amount expires, the balance in prepaid insurance is reduced by a credit to prepaid insurance and a debit to insurance expenses.
Another objective is to report on the balance sheet the unexpired amount of insurance as the asset Prepaid Insurance. If you can arrange for your insurance payments to be the amount applicable to each accounting period, you can simply debit Insurance Expense and credit Cash.
