Prepaid Worker's Compensation Insurance Is What Type Of Account
Prepaid Worker's Compensation Insurance Is What Type Of Account. If for the month of january the direct labor is $40,000, then $2,000 of the worker comp cost should be included as direct labor. Another item commonly found in the prepaid expenses account is prepaid rent.
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Asset liability revenue expense a. Wages and salaries expense is: Credit the corresponding account you used to make the payment, like a cash or checking account.
What Type Of An Account Is Wages And Salaries Payable?
Any worker compensation premiums that have been incurred, but not yet. What type of account is prepaid insurance? Equal to gross pay equal to the employer's taxes none of the above.
Wages And Salaries Expense Is:
Any workers' compensation premiums that have been incurred but not yet remitted to the insurance companies should be reported as the current liability. So you would rather see trend on these insurance costs separately. Lani basa, cfe mba controller • march 18, 2016.
For More Information About The Accrual Method Of.
This account is an asset account, and assets are increased by debits. Equal to net pay b. If for the month of january the direct labor is $40,000, then $2,000 of the worker comp cost should be included as direct labor.
The Worker Compensation Costs Associated With Selling And General Administration Should Be Reported As An Expense On The Income Statement.
Prepaid worker's compensation insurance is what type of account? Contentprepaid insurance and the asset accountis prepaid insurance an asset or liability?accountingtoolssolution n°3: Insurance companies carry prepaid insurance as current assets on their balance sheets because it's not consumed.
An Example Of A Prepaid Expense Is Insurance, Which Is Frequently Paid In Advance For Multiple Future Periods;
Personal insurance payments are not deductible business expenses so must not go on the income statement (profit and loss report).they must go on the balance sheet. Below is the journal entry for prepaid expenses; Prepaid insurance is payments made to insurers in advance for insurance coverage.
