What would the adjusting entry be if a company rents a building out for 3,200 a mth. But by prearrangement delays paying October's rent until Nov.5th. On this date the company paid the rent for both Oct. And Nov? Where would I even begin!
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What would the adjusting entry be if a company rents a building out for 3,200 a mth. But by prearrangement delays paying October's rent until Nov.5th. On this date the company paid the rent for both Oct. And Nov? Where would I even begin!
The adjusting entry will be:
Debit Prepaid Rent for 3,200 (Nov)
Debit Rent Expense for 3,200 (Oct)
Credit Cash for 6,400
At the end of Nov the entry will be:
Debit Rent Expense for 3,200
Credit Prepaid Rent for 3,200
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