第1个回答 2022-11-02
I am confused with the audit adjustment and your narration. Let's begin with the audit adjustment to *** yze.
The audit adjustment increased the amount of prepaid expenses. That me you have paid for the insurance already.
Your narration indicated that the insurance was still needed to pay. Then what is "prepaid expenses" for? We should use Arued expenses.
Now you see, the o results above are conflict.Other than the audit ajustment, I have to know what you did (the entries) for insurance before 30/6/09.
2011-10-22 16:24:03 补充：
There might be such a situation for you to consider. (we pay for the insurance before it starts)
e.g. You paid on 31/12/08 for year 2009, and debt. expense at one time. On 30/06/09, the insurance wasn't due yet. So the auditor thought that only half of the amount should be calculated as expense
2011-10-22 16:24:45 补充：
and the rest should be moved to prepaid expense and to be calculated as expense after 30/06/09
By the same token, the insurance you would pay for at the end of 2009 was for 2010.
So, when the insurance of 2009 was due, the entry should be
Dr. expenses( insurance)
Cr. prepaid expenses(insurance)
2011-10-22 16:24:55 补充：
When you paid money at the end of that year for the next year
Dr. Prepaid expenses (insruance)
Cr. Bank,The original entry should be: Dr. Prepaid Expenses Dr. Insurance Cr. Arued Charges.
When the expenses are paid in 09/10, the payment should be recorded as Dr. Arued Charges Cr. Bank
For reference only!,you only need to make the entry aording to the auditor.
DR Prepaid Expenses (Insurance)
CR Aumlated P/L
As your aount has been finalised and the auditor finds that the prepaid expenses of Insurance is overstated, hence, it is required to adjust the Prepaid expenses to the correct figure and the Aumulated P/L to reflect the correct profits.
If the aount is not yet finalised, the entry is as below:
DR Prepaid Expenses (Insurance)
CR Expenses (Insurance),