Mar 03, 2008 · The only way interest expense will go on to the balance sheet is if is accrued interest (interest charged but not yet paid), then in that case it is a current liability. Sep 12, 2017 · Prepaid expenses on the balance sheet should be shown as assets. Expense the item over time as you receive its benefits. As you use the item, decrease the value of the asset. The value of the asset is replaced with an actual expense recorded on the income statement. Once the item is used, it is an expense. Then, as each month ends the prepaid rent account, which is on the balance sheet, is reduced by the monthly rent amount, which is $24,000 divided by six months, or $4,000 per month. At the same time, the company recognizes a rental expense of $4,000 on the income statement.

Nov 15, 2019 · If for example an owner pays personal travel expenses of 250 using a supplier account of the business, then the personal expenses would be debited to the drawings account and not to the travel expenses account as follows: Journal Entry for Personal Expenses. The accounting records will show the following bookkeeping entries for the personal ...