In the insurance policy example, if a company with a monthly reporting cycle were to spend $12,000 on a one-year insurance policy, then accounting would book a recurring journal entry each month to expense $1,000 of this policy. If the accounts involved and the amounts of the entry are identical each month, this is sometimes referred to as a standard journal entry.Įxamples of recurring journal entries are the monthly rent paid for a piece of property or the expenses incurred for an insurance policy. They are typically done to record items like accruals, depreciation, amortization, and allocations. Recurring journal entries are associated with particular expenses or transactions that are repeated every accounting period.
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