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    Veekar's Avatar
    Veekar Posts: 4, Reputation: 1
    New Member
    		  
    #1

    Jun 2, 2008, 07:24 AM
    Regarding Adjustment entry for rent
    Hi

    We paid Jan 2008 Rent in Dec 2007 for 3000. Can you please let me know the adjustment entry for this.

    Thanks
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 2, 2008, 07:57 PM
    It's prepaid rent, an asset. You cannot expense it until January. Obviously you'll credit cash since it was paid, and you debit the Prepaid Rent. Technically, that isn't an adjusting entry. The adjusting entry will be done in January, where you'll credit it back out of Prepaid Rent and then debit Rent Expense.
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