1400 Prepaid Expenses
Payments made in advance for something you will use later: annual insurance, a year of software, prepaid rent. An asset released to expense month by month.
In Solo Superstars
Set up a prepaid schedule and the app moves one month’s share from here to the expense account each month, including at year end.
Example
$1,200 annual insurance paid in January: debit 1400 1,200. Each month: debit 6050 Insurance 100, credit 1400 100.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- prepayments
Related
- Prepaid expense — Something you paid for ahead of time, like annual insurance. Sits as an asset and is released to expense month by month.
- Prepaid schedule — The plan that releases a prepaid amount to expense evenly over its months, posting an adjusting entry each period.
- Chart of accounts — The list of buckets your money can be sorted into: assets, liabilities, equity, revenue, expenses. New workspaces start with a default set you can rename or extend.
- Default chart — The chart of accounts every new workspace starts with, numbered the way QuickBooks users expect. Yours may have been renamed or extended since.