Search 85,435 tutors
FIND TUTORS
Ask a question
0 0

my income statement is off because of duplicate entries on health insurance

The insurance expense on our income statement is generally around 3 to 4 grand.  I started at this business in March and many invoices etc had not been entered/paid.  In March and April, I entered a lot of these and paid them. Because of the dates that I used when I entered them, previous months were showing up in March and April so the insurance expense went up from 3 to 4 grand to 10 to 15 grand.  I credited the duplicates and I know that I can't change the dates at this point to move them from March or April to their correct month since the months are closed (at least I don't think it is possible).  So far in May, the income statement shows a negative amount for insurance.  Is this just how it is going to have to be or is there something I can do to make proper adjustments so that expenses are showing up in the correct month?
Tutors, please sign in to answer this question.

1 Answer

Answering to help a future student
 
When this happens you basically need to true up the expense account for what it should be at that point in time.  For instance you may have accruals that need to be reversed.