How do I account for the prepaid utilies in my General Legder? VVV 11 - I prepay $1200 cash for utilities for the next 12 months. Prepaid Utilities $1,200 Cash $1,200 IM HUIUI 15 - One year after prepaying $1,200 for 12 months of utilities. I want to make an adjusting entry to reflect 1 year's use of utilities. $1,200 Utilities Expense Prepaid Utilities $1,200 Txn ID Debit Cash Credit $1,200 Balance $937,950 11 Txn ID 11 15 Prepaid Utilities Debit Credit $1,200 $1,200 $1,200 $1,200 Balance $1,200 ($1,200) $0 This was the answer I was provided by a Chegg Expert. Can someone please tell me if/why I should exclude Journal entry 11 - prepaid expense? Doesn't every journal entry need to be accounted for in my GL? Prepaid Expenses: Txn ID Particulars Debit Credit Balance 11 Cash 1,200 1,200 15 Utilities Expense 1,200 -1,200 1,200 1,200 0 Utilities Expense: Txn ID Particulars Debit Credit Balance 15 Prepaid Expenses 1,200 1,200 1,200 0 1,200