On June 1st I Issued Check No. 583 for $9,100 to pay Amy Wong Real Estate for two month's worth of rent in advance.
![]() |
On June 1st I Issued Check No. 583 for $9,100 to pay Amy Wong Real Estate for two month's worth of rent in advance.
Whose books are you talking about? And is this an operating or finance lease?
Well for simplicity, let's assume an operating lease.
Your books:
Upon Payment
Dr. Prepaid rent (an asset account) $9,100
Cr. Cash $9,100
After one month
Dr. Rent Expense $9,100
Cr. Prepaid Rent $9,100
Amy Wong's books:
Upon Payment
Dr. Cash $9,100
Cr. Deferred rent revenue (a liability account) $9,100
After one month
Dr. Deferred rent revenue $9,100
Cr. Rent Revenue $9,100
All times are GMT -7. The time now is 10:32 PM. |