This means that the debit balance in prepaid insurance on December 31 will be $2,000. This translates to five months of insurance that has not yet expired times $400 per month or five-sixths of ...

You carry prepaid assets such a prepaid insurance in the current assets section of the balance sheet. ... Start by creating a trial balance to ensure that debits and credits sum to the same number.

Peter Gratton, M.A.P.P., Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at ...

For example, if the cash account has an unadjusted debit balance of $1,000 and there is a $200 credit adjustment, the adjusted trial balance is a debit of $800, which is $1,000 minus $200. Income ...