Accruals - expenses due but not paid. (Payroll for the period June 16 thru June 30 and paid on July 5)

June 30 Entry
Debit Labor - 10,000
Credit Accrued Payroll - 10,000

July 5 Entry
Debit Accrued Payroll - 10,000
Credit Cash - 10,000

Prepaids - expenses paid but not due. (Insurance paid a year ahead of time. Reduce the Prepaid by 1/12 each month)

Insurance Bill $2400

Debit Insurance 200
Debit Prepaid Insurance - 2200
Credit Cash 2400

Next Month

Debit Insurance 200
Credit Prepaid Insurance 200

Hope the above helps your understanding.