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27 March, 15:08

Turnkey systems, inc. began the month of june, 2014 with a prepaid expenses balance of $240,000. during the month, debits totaling $110,000 and credits totaling $80,000 were made to the prepaid expenses account. what was the june, 2014 ending balance of prepaid expenses?

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  1. 27 March, 15:14
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    The ending balance of prepaid expense can be calculated using the following formula:

    Ending balance = Beginning Balance + Debit entries - Credit Entries

    We are given the following information:

    Beginning Balance = $240,000

    Total Debit entries = $110,000

    Total Credit entries = $80,000

    Hence,

    Ending balance = 240000+110000-80000 = 270,000

    The ending balance of prepaid expense shall be $270,000
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