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Topic: future invoice /prepaid,deferred, or none (

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metcpa
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Joined: 01 Sep 2008
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Posted: 06 Dec 2010 at 09:58 \| IP Logged

The company adopts a calendar year end.

Received an rent invoice in November for the month of Jan 2011.
Do i need to record as of 12/31/2010 FS?

not yet paid, so i dont think i can book in prepaid.
since it's was for 2011, can i do nothing?
or need to record Dr. Deferred Expense Cr. AP?

I still think do nothing since it's was for 2011 and not yet paid.

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mcannon1104
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Posted: 06 Dec 2010 at 10:58 \| IP Logged

When's the invoice due? If it's due before the end of the year, debit prepaid and credit cash. If not due before the end of the year, you probably would want to set up the payable, and I'd still debit prepaid.

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metcpa
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Posted: 06 Dec 2010 at 11:43 \| IP Logged

Due in Jan.2011 and will be paid in 2011; thus, i dont think it's prepaid b/c the company will not going to pay before the year end.

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