Suppose you want to rent office space for your new business. You write a check for $3,000...
Suppose you want to rent office space for your new business. You write a check for $3,000 on January 2, 2018 to lease the office space for the month of January. How would you account for this transaction?
Homework Answers
Rent becomes due on January 31st but the rent is paid on January 2nd. It means that the rent is paid in advance. Rent paid in advance is accounted as prepaid rent. On January 31st rent expense will be recorded.
| Date | Accounts | Debit | Credit |
| Jan 2, 2018 | Prepaid rent | $3,000 | - |
| Cash | - | $3,000 |
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Suppose you want to rent office space for your new
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I want an explanation and answer to understand this questions Thank you Creations Limited started business...
I want an explanation and answer to understand this
questions
Thank you
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I want an explanation and answer to understand this
questions
Thank you
Creations Limited started business on January 13, 2018. On January 5th, 2018 a cheque for $3,000 was written, payable to the company's landlord, and recorded as Prepaid Rent. The payment was to cover rent on business premises from January 1st to March 31, 2018. Assuming no other journal entries were made what adjusting entry would be required on March 31s?
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