The purpose of an entry that contains a debit to prepaid salary and a credit to salary expense is to recognize a (an)?

A. This entry is an adjusting entry to recognize prepaid expense and to reflect the correct salary expense for the period.

 

The original entry made in recording the transaction (using expense method):

Dr  Salary Expense

Cr  Cash

 

To recognized the prepaid salary expense and to correct the amount of salary expense for the period, we make an adjusting entry:

Dr   Prepaid Expense

Cr  Salary Expense

A prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the income statement. Unlike conventional expenses, the business will receive something of value from the prepaid expense over the course of several accounting periods.

1ST ENTRY

Dr  Salary Expense

Cr  Cash

2ND ENTRY

Dr Prepaid Expenses

Cr  Salary Expense

FINAL ENTRY

‎Dr PE

Cr Cash

The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. These are both asset accounts, and do not increase or decrease a company's balance sheet. ... The adjusting journal entry for a prepaid expense, however, does affect both a company's income statement and balance sheet.

why the Arab countries sell crude oil the question that arises why do not distract oil derivatives to gain value-added instead of selling it crude

(d)