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coolzami
Apr 19, 2011, 01:01 AM
Adjustment Entry,Closing Entry.Where should I do adjustment entry

pready
Apr 19, 2011, 09:06 AM
Prepaid Rent is a balance sheet account or otherwise known as a permanent account and is not closed.

At the end of the acocunting period you will have to determine how much of the prepaid rent has been used and do an adjusting entry.

The adjusting entry will be:
Debit Rent Expense for the amount of prepaid rent used
Credit Prepaid Rent for the amount used during the accounting period

smoothy
Apr 20, 2011, 09:43 AM
Have you read your textbook yet. It will have explained this. Start with the index in the back


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