October 30, 2016 admin

Prepaid Expenses—Miscellaneous

Assets

PREPAID EXPENSES—MISCELLANEOUS ASSET ACCOUNT
1560

ACCOUNT EXPLANATION
Expenses of substantial amount paid in advance that will benefit future accounting periods and for which no specific prepaid account has been provided elsewhere in the Manual.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Purchase of one year’s supply of repair order forms P
    Prepaid Miscellaneous 1560
      Accounts Payable—Trade 2100
             
  Monthly usage of repair order forms SE
    Office Supplies 8640
      Prepaid Miscellaneous 1560
COMMENTS
  • A subsidiary record such as Form FMC 61, Prepaid and Accrued Expense Schedule, should support this account and should be used in computing monthly write-offs to expense.