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Cash Basis and Financed Insurance


(@eileen-6)
Joined: 2 years ago
Posts: 3
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A cash basis firm financed Liability insurance.  Should I record the full expense by debiting Ins exp/interest exp and crediting Ins Liability/int liab account, to show on the Balance Sheet. When monthly payments are made, debit Ins Liab removed link Liab. and credit cash account.  Since cash basis, I wasn't sure if they should take the full expense in one month.  Should I just record when payments are made by debiting Ins Exp/Interest Exp and credit to cash account. TIA 


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