1 d
Prepaid expenses have quizlet?
Follow
11
Prepaid expenses have quizlet?
Are you a student at Florida State University preparing for the SPM 2220 exam? Feeling overwhelmed by the amount of material you need to study? Don’t worry, because Quizlet is here. Prepaid expenses are initially recorded as assets, but their value. pays $5,000 for Insurance for 24 months on January 1. A prepaid expense is a current asset that represents an expense the company will not have to fund in the future. Over time, the expired portion of prepaid accounts is transferred from the asset account and reported as an expense. Find step-by-step Accounting solutions and your answer to the following textbook question: Which of the following group of accounts are all assets? a. If you have recently received a prepaid card from a participating retailer or as a reward, you may be wondering how to activate it. CSCMP Supply Chain Managment Potterloftis12 Planning and Buying quiz 2. At the end of June, Busy Beaver estimated that there was $2,000 of office supplies left unused. Find step-by-step Accounting solutions and your answer to the following textbook question: Which of the following assets would be classified as current assets on the balance sheet? - a. Quizlet for Schools; Language Country. Which of the following is considered to be an accrued expense? A. Find step-by-step Accounting solutions and your answer to the following textbook question: The balance in the prepaid insurance account on January 1st (first day of the fiscal year) for Modern Company was $804. Study with Quizlet and memorize flashcards containing terms like 1. With the passage of time Through use and consumption b. Cash YEAR 2 37,600 Short-term investments YEAR 2 - 91,000 Accounts receivable, net YEAR 2 - 86,000 Merchandise inventory YEAR 2 - 121,500 Prepaid Expenses YEAR 2 - 12,200 Accounts payable YEAR 2. If you’re looking for a versatile and convenient gift option, a prepaid Vanilla Visa gift card could be the perfect choice. Find step-by-step Accounting solutions and your answer to the following textbook question: During the year, prepaid expenses decreased $5,600, and accrued expenses increased$2,400. Which of the following would not be classified as a current asset? A Accounts payable C. Payments made for products and services that do not ever expire Classified as liabilities on the balance sheet Decreases in retained earnings Assets that represent prepayments of future expenses Study with Quizlet and memorize flashcards containing terms like Salaries Payable ----- Cash, Prepaid Rent -----Cash, Salaries expense -----Salaries Payable and more To record this period's use of a prepaid expense. c) Classified as liabilities on the balance sheet. Find step-by-step Accounting solutions and your answer to the following textbook question: As prepaid expenses expire with the passage of time, the correct adjusting entry will be a: a. Prepaid cards will force you to limit your spending to what you have and not a. liability, credit D Study with Quizlet and memorize flashcards containing terms like The effectiveness of the control activities in the purchasing process should ensure that new insurance policies _____. Prepaid expenses have. Study with Quizlet and memorize flashcards containing terms like What is an adjusting entry?, What are the types of adjusting entries?, What are deferrals? and more Prepaid expenses, deferred revenues. Study with Quizlet and memorize flashcards containing terms like If equity is $2 million and total revenue is $1. Salaries Payable, Unearned Revenue, Delivery Expense c. Debit Insurance Expense, $8,450. assets that are currently used in the operations of the company cash and assets expected to be converted to cash within a year a very small proportion (less than 10%) of the total assets of the entity cash, marketable securities, and accounts and notes. Find step-by-step Accounting solutions and your answer to the following textbook question: Hawk Company records prepaid assets and unearned revenues in balance sheet accounts. prepaid expenses have. Prepaid expenses are classified as assets; these are the items that have been paid in advance. Study with Quizlet and memorize flashcards containing terms like Harrod Company paid $5,400 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. Look no further than My Prepaid Center, a user-f. not yet been recorded as expenses Term. Insurance Expense 300 Prepaid Insurance 300 d. Find step-by-step Accounting solutions and your answer to the following textbook question: Prepare adjusting journal entries for the year ended (date of) December 31, 2011, for each of these separate situations. Thus, among the choice, the correct answer is option D. , A business is an organization in which basic resources or inputs, like materials and labor, are assembled and processed to provide outputs in the form of goods or services to customers. debit to a revenue accountdebit to an asset accountcredit to an asset accountcredit to an expense account. Under accrual accounting, the doctor recognizes revenue: in July in either March or July. Prepaid expenses are prepayment expenditures, which means that these expenses have not yet been incurred, but the business has paid this cost in advance in the future Before realizing the prepaid expenses, these are categorized as current assets. Study with Quizlet and memorize flashcards containing terms like Accounting Period Concept, Accrual Basis of Accounting, Revenue Recognition Concept and more Prepaid Expense, Accrued Revenues, Unearned Revenues, and Accrued Expenses Unrecorded expenses that have been incurred and for which cash has yet been paid. ), Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Debit Insurance Expense, $3,600; credit Prepaid Insurance, $3,600 b. So, you need to record the amount as a prepaid expense. , accruals, prepayments, accrual, prepayment, accurals, accural, acrual, or acruals and more Prepaid expenses are costs of assets acquired in an accounting period:. been incurred and paid. Study with Quizlet and memorize flashcards containing terms like Prepaid expenses, Which of the following is recorded with an adjusting entry associated with a prepaid expense?, Which of the following would be recorded as an expense under cash-basis accounting? and more. } & \text{Cash received for use of land next month}\\ \text{b. Study with Quizlet and memorize flashcards containing terms like Expiration of prepaid insurance, Prepaid expenses, Rent, insurance, and supplies are examples of and more. paid $8,900 cash for management services to be performed over a two-year period beginning July 1. been incurred and not yet paid; Your solution's ready to go! Our expert help has broken down your problem into an easy-to-learn solution you can count on. As for the given accounts, the account with a typical debit balance is prepaid expense, which refer to the payment made by the company for goods and services that are yet to be consumed or used. Study with Quizlet and memorize flashcards containing terms like Which of the following describes a general ledger?, When financial statements are prepared, unexpired prepaid accounts are recorded as________________ and the expired prepaid account is reported as a ______, Identify which of the following lists include only examples of assets Find step-by-step Accounting solutions and your answer to the following textbook question: Prepaid expenses are eventually expected to become: a. Prepare the year-end adjusting entry to reflect expiration of the. Insurance Expense 300 Prepaid Insurance 300 d. Recorded as a debit to an unearned revenue account b. Salaries of $800 are unpaid. Accounts receivable D. Prepaid expenses, 3. The company has earned $6,000 in unrecorded service fees. Find step-by-step Accounting solutions and your answer to the following textbook question: Accrued revenues would appear on the balance sheet as A Liabilities C. The flexibility of prepaid cellphone plans is great, and can potentially save you tons of cash—so why does everyone still insist on signing a contract? Let's take a look at the pro. Work in process inventory. Study with Quizlet and memorize flashcards containing terms like The adjusting entry for accrued revenues includes a? a. That’s why finding the right wireless service provider is crucial. In accounting, a prepaid rent account is an asset if you are renting the property or a liability if you are the landlord. Prepaid Expense is an advance payment for future expenses. Study with Quizlet and memorize flashcards containing terms like The prepaid tuition plan covers:, Most merit scholarships offered to students are based on their:, Repayment on the Perkins Loan begins: and more Funds left over from a 529 plan after all college expenses have been paid go to whom? The account holder. The balance in the prepaid insurance account before adjustment at the end of the year is $5,400, and no adjustments had been made previously. The prepaid expenses will be recorded on the income statement after payment. First, debit the Prepaid Expense account to show an increase in assets. For example, debit the prepaid expense account and credit. Multiple select question. Long-term investments, current assets, plant assets, intangible assets. This statement is incorrect. A computer technician has been paid in advance to install software updates as they become available A computer technician has installed the latest software updates, but you have not received an invoice or made payment Study with Quizlet and memorize flashcards containing terms like 1. Insurance paid for the next year d. Find step-by-step Accounting solutions and your answer to the following textbook question: During the year, prepaid expenses decreased $5,600, and accrued expenses increased$2,400. Let us focus on deferrals. Thus, among the choice, the correct answer is option D. james keyes net worth Electronic payment is everywhere you go. Hence, the prepaid expenses are initially classified as assets. Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of $6,000 on March 1, 2016 Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amount of insurance premium. Study with Quizlet and memorize flashcards containing terms like Accrual-Basis Accounting, Cash-Basis Accounting, The difference between Cash/Accrual basis methods is in the_____ of when we record the revenues and expenses and more. (b) revenues are recorded in the period in which services are performed. To record expense incurred but no yet paid or recorded To record revenue earned but not yet billed nor recorded To record expiration of prepaid insurance To record annual depreciation expense. Study with Quizlet and memorize flashcards containing terms like Revenue is recorded when services have been performed or products have been delivered to customers. For example, a company might pay for a year's worth of insurance in advance. $600; insurance expense and prepaid insurance c. Say your business pays $5,000 on December 31, 2021 for an insurance policy that is effective January 1, 2022 - December 31, 2022. Study with Quizlet and memorize flashcards containing terms like Adjusting entries:, there are two ways for recording a transaction. Prepaid Rent Expense D. A prepaid debit card is different from a credit card, because you aren't borrowing money when you use it; instead you are spending money that you or someone else has loaded (or dep. side which decreases that account right side Study with Quizlet and memorize flashcards containing terms like Which of the following statements is incorrect? * Adjustments to prepaid expenses and unearned revenues involve previously recorded assets and liabilities. Cash, Accounts Payable, Buildings b. This statement is incorrect. The adjusting entry for prepaid rent or other prepaid assets follows a similar process. Multiple select question. Find step-by-step Accounting solutions and your answer to the following textbook question: Prepaid expenses are eventually expected to become - a. Study with Quizlet and memorize flashcards containing terms like Revenue is recorded when services have been performed or products have been delivered to customers. * Adjusting entries can be used to record both accrued expenses. where is strays playing near me United States; Canada. Camels are survivors. Study with Quizlet and memorize flashcards containing terms like services provided by an attorney that have not been recorded (accrual/deferral expense/revenue), paid for one year's insurance policy (accrual/deferral expense/revenue), retainer received by client for future legal representation (accrual/deferral expense/revenue) and more. Are you tired of dealing with the hassle of managing your finances? Do you want a convenient and efficient way to track your prepaid card balances and transactions? Look no further. Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR) ______ To record revenue earned that was previously received as cash in advance. One such tool that has gained popularity in r. This specified amount is the: Average amount the plan will pay but could pay more Maximum benefit the policy will pay for that procedure. Find step-by-step Accounting solutions and your answer to the following textbook question: Accrued revenues would appear on the balance sheet as A Liabilities C. (a) revenues are recognized when earned and expenses are recognized when incurred, and (b) does not necessarily coincide with receipt or payment of cash. Deferred charges such as bond issue costs, plant rearrangement costs or relocation charges are prepayments that are chargeable to the operations of several years and are separately classified as, prepaid expenses that auditors encounter are insurance, advertising services, office supplies, rent, interest, taxes and royalties. Study with Quizlet and memorize flashcards containing terms like Prior to the adjusting process, accrued revenue has, Prior to the adjusting process, accrued expenses have, Prepaid expenses have and more. Study with Quizlet and memorize flashcards containing terms like A T-account is A. liabilities are understated. is dion mitchinson married Study with Quizlet and memorize flashcards containing terms like adjusting entries, When must adjusting entries be made?, Adjusting entries can be made because of? and more Prepaid expenses, accrued expenses, deferred income, accrued revenue. Find step-by-step Accounting solutions and your answer to the following textbook question: the adjusting entry for a prepaid expense includes a debit to a(an) _____ account and a credit to a(an) _____ account. Step 1: Determine what the current account balance equals. One such tool that has gained popularity among students is Quizlet In today’s digital age, technology has revolutionized the way we learn and collaborate. Demonstrate the required adjusting journal entry on Dec. The first transaction has been completed as an example. Thus, option A is an incorrect answer. e) Assets from prepayments of future expenses. Unlock a prepaid Tracfone for the first time by activating it through the Tracfone website. Fresh features from the #1 AI-enhanced learning platform Find step-by-step Accounting solutions and your answer to the following textbook question: Which of the following is included in the calculation of the quick (acid-test) ratio? a. What effect does a decrease in prepaid expense have on TI and the corresponding DTA/DTL account. Prepaid Expense- Accounts Before Adjustment. Through use and consumption With the passage of time, Recording the adjusting entry for depreciation has the. Normally, expenses are recognized when they are incurred.
Post Opinion
Like
What Girls & Guys Said
Opinion
75Opinion
Prepaid Expense- Accounts Before Adjustment. (d) All the responses above are correct. Find step-by-step Accounting solutions and your answer to the following textbook question: Preparing reversing entries Hawk Company records prepaid assets and unearned revenues in balance sheet accounts. That’s why finding the right wireless service provider is crucial. The balance in the prepaid insurance account before adjustment at the end of the year is $5,400, and no adjustments had been made previously. If accounts payable have increased during a period revenues on an accrual basis are less than revenues on a cash basis expenses on an accrual basis are less than expenses on a cash basis expenses on an accrual basis are the same as expenses on a cash basis expenses on an accrual basis are greater than expenses on a cash basis. Some examples of prepaid expense or prepaid asset accounts include: Step 2/6 1. Study with Quizlet and memorize flashcards containing terms like Expiration of prepaid insurance, Prepaid expenses, Rent, insurance, and supplies are examples of and more. Study with Quizlet and memorize flashcards containing terms like The prepaid tuition plan covers:, Most merit scholarships offered to students are based on their:, Repayment on the Perkins Loan begins: and more Funds left over from a 529 plan after all college expenses have been paid go to whom? The account holder. ), Explain your understanding of what an accrued expense is by selecting the statements below which are correct. Find step-by-step Accounting solutions and your answer to the following textbook question: Quick assets include: A. How much supplies expense should Busy Beaver report for June?, If an accountant forgets to adjust the Prepaid. Study with Quizlet and memorize flashcards containing terms like Why is it necessary to make an adjustment for supplies used?, What are prepaid expenses? Give four examples, What adjustment would be recorded for expired insurance? and more. cheap gas prices bakersfield Analysis of business transactions and source documents Preparing financial statements and other reports Summarizing the recorded effect of business transactions Presentation of financial information to decision-makers Preparation of the trial balance A sales invoice. 3 million, then ROE is _____ Total current assets$78,632 Deferred income taxes$3,210 Inventories$9,823 Prepaid expenses$1,050 Other assets$3,890 Total current liabilities$32,043 What is the quick ratio? 224 232 and more. cash, cash equivalents, receivables, prepaid expenses, and inventory C. Jamison paid the current year's property taxes already. Is this a prepaid or accrued expense, and how will it be represented on the settlement statement?, What's the term for a charge that either party has to pay at closing?, Why is the buyer usually responsible for the. Recorded as a debit to a prepaid expense account c. Cash, Repairs and Maintenance Expense, Dividends. Accounts receivable D. Prepaid expenses, 3. In some accounts, this number may be followed by a dash and the number. However, regularly monitoring your prepaid balance is of utmost import. Accrued expense items. For each of the following, (1) identify the type of account as an asset, liability, equity, revenue, or expense; (2) identify the normal balance of the account; and (3) enter debit (Dr) to identify the kind of entry that would increase the account balance. ** On July 1, 2011, Baxter Company paid $1,800 for six months of insurance coverage. liabilities are understated. the bush company usa cash, cash equivalents, receivables, prepaid expenses, and inventory C. In today’s digital age, technology has revolutionized the way we learn and acquire knowledge. Employees work a 5 day week and the company pays $800 a day in wages. been incurred and paid. A T-account has a $865 debit balance. The education technology industry is having a moment. Prepaid expenses have already been paid but have yet to be incurred. Study with Quizlet and memorize flashcards containing terms like accounting period concept, cash basis, accrual basis and more prepaid expenses. If you’re in the latter group, the following informat. cash, cash equivalents, receivables, prepaid expenses, and inventory C. Use the horizontal model or write the journal entry to record the payment of a one-year insurance premium of $6,000 on March 1, 2016 Use the horizontal model or write the adjusting entry that will be made at the end of every month to show the amount of insurance premium. Find step-by-step Accounting solutions and your answer to the following textbook question: Goods purchased for future use in the business, such as supplies, are called: A B. For many of us, direct deposit has become the default way to receive our paychecks Got some vocab words you need to learn? Try Quizlet, a free interactive learning tool. Hence, the prepaid expenses are initially classified as assets. joliet murders today Study with Quizlet and memorize flashcards containing terms like The revenue recognition principle a. Whether you’re looking for a pla. not yet been recorded as expenses and not been paid b. It is presented as a current asset in the balance sheet report. Long-term investments, current assets, plant assets, intangible assets. if they are paid after they are incurred, Adjusting entries are made to ensure. Many people use prepaid cards to make all of their purchases, while other people have never even touched a prepaid debit card. Study with Quizlet and memorize flashcards containing terms like Harrod Company paid $5,400 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. The Netspend Visa Prepaid card is a simple option for transaction payments without requiring a bank account. Prepaid Expenses are decreased with a debit Unearned Revenue is increased with a debit Rent Expense is increased with a credit Accounts Payable is increased with a credit Study with Quizlet and memorize flashcards containing terms like accrued expenses, date of a note, interest and more Expenses paid in one fiscal period but not reported as expenses until a later fiscal period. principal of a note. Accounts receivable D. Prepaid expenses, 3. The following data was used to prepare adjusting entries for Hawk Company as of August 31, the end of the company's fiscal year. A contra-asset account such as Accumulated Depreciation will likely have debit balance b Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time Adjusting entries. liability, credit D Study with Quizlet and memorize flashcards containing terms like The effectiveness of the control activities in the purchasing process should ensure that new insurance policies _____. The company's annual accounting period ends on December 31, 2015. Study with Quizlet and memorize flashcards containing terms like Generally accepted accounting principles require companies to use the _____ of accounting, Using accrual accounting, revenue is recorded and reported only _____, Prior to the adjusting process, accrued expenses have _____ and more. The current assets of most companies are usually made up of: A. Normally, expenses are recognized when they are incurred. , Which statement is true regarding the cash.
The debt created by a business when it makes a purchase on account is referred to as an Quizlet for Schools; Language Country. It is presented as a current asset in the balance sheet report. These gift cards can be used like credit or debit cards, and are accepted anywhere Visa cards are acce. Prepare the journal entry to reflect expiration of the insurance as of December 31, 2011. Raw materials inventory. taylor swift merch coupon Deferred charges such as bond issue costs, plant rearrangement costs or relocation charges are prepayments that are chargeable to the operations of several years and are separately classified as, prepaid expenses that auditors encounter are insurance, advertising services, office supplies, rent, interest, taxes and royalties. Electronic payment is everywhere you go. In today’s digital age, students have a wide range of tools at their disposal to aid in their exam preparation. With fluctuating gas prices and the need to stay within a budget, it’s important to find a solution tha. Demonstrate the required adjusting journal entry on Dec. Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense Cash received for use of land next month b. Identify the effect, if any, that each of the following transactions would have upon cash and net income. chick'n rotonda photos Over time, the expired portion of prepaid accounts is transferred from the asset account and reported as an expense. Study with Quizlet and memorize flashcards containing terms like If a transaction decreases cash by $100, the balance sheet will balance if which of the following occurs? (Select all that apply) Stockholders' equity is increased A liability is decreased Revenue is increased Another asset is increased, Claire purchases equipment for $10,000 by paying $3,000 in cash and borrowing $7,000 from the. A broad principle that requires identifying the activities of a business with specific time periods such as months, quarters. had the following beginning and ending balances in its prepaid expense and accrued liabilities accounts for the current year: Prepaid expenses Accured liabilities Begin balance $5,000 $8,000 Ending balance $10,000 $20,000 Debits to operating expenses totaled $100,000. expenses in the period when they are paid - d. Give three examples of hospital expense items that may be prepaid and more. The company has earned $6,000 in unrecorded service fees. Find step-by-step Accounting solutions and your answer to the following textbook question: The account type and normal balance of Prepaid Expense is A revenue, credit C. tornado warning new albany indiana A prepaid expense is a current asset that represents an expense the company will not have to fund in the future. One option that has gained populari. Multiple choice questionPrepaid insurance would be credited for $3,600Cash would be credited for. These gift cards can be used like credit or debit cards, and are accepted anywhere Visa cards are acce.
Find step-by-step Accounting solutions and your answer to the following textbook question: Which of the following assets would be classified as current assets on the balance sheet? - a. Camels are survivors. Rent revenue earned but not received b. Study with Quizlet and memorize flashcards containing terms like 1. Scheduled maintenance: June 29, 2024 from 11:00 PM to 12:00 AM hello quizlet Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense Cash received for use of land next month b. Prepaid expenses are classified as assets; these are the items that have been paid in advance. debit Prepaid Insurance, $11,000; credit Insurance. not yet been recorded as expenses but have been paid. , one month, six month, one year, -an accounting system. Which of the following is considered to be an accrued expense? A. Debit Insurance Expense, $8,450. Debit Insurance Expense, $4,850; credit Prepaid Insurance, $4,850 c. Study with Quizlet and memorize flashcards containing terms like Accrual-basis accounting, The difference between accrued revenues and unearned revenues:, Depreciation and more Expenses Paid in Arrears (Tax) 5 terms Preview. amanda hardy boxer Find step-by-step Accounting solutions and your answer to the following textbook question: Goods purchased for future use in the business, such as supplies, are called: A B. Are you tired of dealing with the hassle of managing your finances? Do you want a convenient and efficient way to track your prepaid card balances and transactions? Look no further. when they are incurred and paid at the same time 3. been recorded as expenses and paid. Study with Quizlet and memorize flashcards containing terms like Harrod Company paid $5,400 for a 4-month insurance premium in advance on November 1, with coverage beginning on that date. Quizlet for Schools; Parents; Identify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR) To record revenue earned that was previously received as cash in advance To record annual depreciation expense To record wages expense incurred but not yet paid (nor. First, debit the Prepaid Expense account to show an increase in assets. Through use and consumption With the passage of time, Recording the adjusting entry for depreciation has the. Study with Quizlet and memorize flashcards containing terms like The best definition of assets is the a. debit Rent Expense, $1,000; credit Prepaid Rent, $3,000 debit Rent Expense, $2,000; credit Prepaid Rent, $2,000 If financial statements are prepared on August 31 the adjusting entry to be made by the Fog Forest is debit Rent Expense, $2,000; credit Prepaid Rent, $2,000. The entity must have an adjustment for prepaid rent expense to determine the correct valuation of expenses already incurred by the entity. Study with Quizlet and memorize flashcards containing terms like Accrual Basis Accounting, Prepaid accounts (also called prepaid expenses), Going Concern Assumption and more. Prepaid Expenses, Buildings, Patents d. This represents the initial recording of. Example 1. Study with Quizlet and memorize flashcards containing terms like What is an adjusting entry?, What are the types of adjusting entries?, What are deferrals? and more Prepaid expenses, deferred revenues. been incurred and paid. Income Tax Payable, Service Revenue, Dividends d. Prepaid Accounts are advance payments made for future periods of renting an asset like building, space, equipment, or such. publlix bakery Indicate how the changes in prepaid expenses and accrued expenses payable should be entered in the reconciling columns of a worksheet. Prepaid Expenses are an exact example of deferral accounting. A receipt may tell you the remaining balance, but, if you want to che. Salaries of $800 are unpaid. All small business owners need a business c. Study with Quizlet and memorize flashcards containing terms like The expense recognition is frequently referred to as matching principle t or f, Income will always be greater under the cash basis of accounting than under the accrual basis of accounting. Which of the following would rarely be classified as a current asset? A. All small business owners need a business c. been paid but have not yet. $1,800; insurance expense and prepaid insurance b. B) Debits to cash and interest expense respectively, and a credit to note payable. Find step-by-step Accounting solutions and your answer to the following textbook question: Prepare adjusting journal entries for the year ended (date of) December 31, 2011, for each of these separate situations. ; Accrued utilities are the utilities incurred during the period but are still unpaid at the end of the reporting period. (c) balance sheet and income statement accounts have correct balances at the end of an accounting period. cash owned by the company collections of resources belonging to the company and the claims on these resources $ 50,000 Inventory: $ 70,000 Prepaid Expense: $40,000 Stock Investments: $ 90,000 Land: $ 95,000 Buildings: $ 115,000 Less. Multiple choice questionPrepaid insurance would be credited for $3,600Cash would be credited for. not yet been recorded as expenses or paid. Paid and recorded in an asset account after they are used or consumed Paid and recorded in an asset account before they are used or consumed Incurred and already paid or recorded Adjusting entries are made to ensure that: (a) expenses are recognized in the period in which they are incurred.