How to Adjust Entries for Prepaid Expenses

Description
"So, in the last presentation I kinda gave you an idea of how to actually create adjusting entries for accrued expenses and I went behind the theory and gave you an example of how to actually conduct and adjusting entries so if you actually don't know the theory behind adjusting entries and you want me to explain it to you, make sure to check out that first tutorial, because this is just gonna be an continuation where I'm gonna show you an example of actually how to perform an adjusting entry for prepaid expenses.

So, we're just gonna talk about one example and I'm gonna start doing that right now. So, prepaid expenses like I said they're kinda like the opposites of accrued expenses. Accrued expenses are expenses that you have not paid for yet, while prepaid expenses are expenses that you have paid for upfront.

So, one example could be that we're paying one year of rent, for our maybe we could say an office that we're renting. So, let's say that we paid intially thirty six hundred dollars for one year of rent, and that our rent contract begins on the first of august and that we're actually at the end august because adjusting entries are done at the end of the month..."

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