General
Monthly Amortization of Prepaid Insurance
The adjusting entry to move one month of coverage from assets to expenses.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Insurance Expense | Expense (+) | 100.00 | - |
| Prepaid Insurance | Asset (-) | - | 100.00 |
💡 Accountant's Note
Commonly checked in audits. If you paid for a 1-year policy, you must recognize 1/12th of that cost every month.
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