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The adjusting journal entry is done each month, and at the end of the year, when the lease agreement has no future economic benefits, the prepaid rent balance would be 0. The payment is entered on November 20 with a debit of $2,400 to prepaid insurance and a credit of $2,400 to cash. LO 4.3Use the following...Continue Reading
Depreciation accounting is a double entry and therefore posted as accumulated depreciation in the balance sheet and as a cost in the Profit and loss account. A higher turnover rate means greater success in its ability to manage fixed-asset investments. There is no specific ratio or range that defines a “good” turnover ratio. Instead, companies’...Continue Reading
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