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    Vivien32's Avatar
    Vivien32 Posts: 2, Reputation: 1
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    #1

    Mar 4, 2012, 11:57 AM
    Accounting 101 Adjusting entries for rent of building
    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!
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 4, 2012, 03:04 PM
    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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