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-   -   Leasing part of the House (https://www.askmehelpdesk.com/showthread.php?t=822400)

  • Mar 4, 2016, 01:08 AM
    CoconutM
    Leasing part of the House
    Question: Part of the house is leased, he signed a 1-year lease for $6000 on April 1. Payment will be done in 2 opportunities, every 6 months. The first 6 months will be paid on September 30, and the second March 31.

    Is it correct to do:
    d: Rental Expense 3000
    c: Cash 3000

    For both September and March dates?
  • Mar 6, 2016, 03:49 PM
    CoconutM
    Bump: please answer please
  • Mar 6, 2016, 04:06 PM
    ballengerb1
    This question is posted in accounting but it could be a legal question too. Having been a landlord I would have to say that this is not how leases normally work. You sign on April 1 you pay on April 1. Leases do not let you live in a play for 6 months rent free, you pay in advance.
  • Mar 7, 2016, 12:44 PM
    joypulv
    This makes no more sense than the other one you posted, clearly homework.
    Your choices here are d and c. What happened to a and b?
    What's the fiscal year and method?
  • Mar 7, 2016, 02:17 PM
    paraclete
    You should not treat accounting entries as some sort of cell shorthand, as raw data your entries are correct

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