10/1/2005 · However, $5,000 of premiums were paid for life insurance policies covering Y’s officers, for which Y is the beneficiary. Thus, $5,000 must be added back to book income on Schedule M-1. Conclusion Although these are just a few of the many Schedule M-1 adjustments , they should illustrate the underlying concept.
10/6/2019 · The adjusting entry on January 31 would result in an expense of $10,000 (rent expense) and a decrease in assets of $10,000 (prepaid rent). The expense would show up on the income statement while the decrease in prepaid rent of $10,000 would reduce the assets on the balance sheet by $10,000.
3/14/2009 · Prepaid Expense Beginning $0 Prepaid Expense Ending $12,000. Out of the $12,000 balance there was $3,000 for a 5 year prepaid expense. Per the 12 month rule, I only took a M-1 adjustment for $600 the first year and excluded the rest of $2,400. So here’s the calculation for my M-1 adjustment: $12,000 Activity -$2,400 Exclusion = $9,600 M-1 adjustment to expense.
Adjusting Entry for Prepaid Expense – AccountingVerse, Prepaid Expenses – Examples, Accounting for a Prepaid Expense, Prepaid expenses accounting — AccountingTools, Common Schedule M-1 adjustments. – Free Online Library
