Ask Experts Questions for FREE Help !
Ask
    mohammed saleem's Avatar
    mohammed saleem Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 22, 2009, 09:31 AM
    Accural basis accounts
    Accural Basis Accounts Accural basis salaries entries and Accural basis rent account adjustmeant entries?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Apr 24, 2009, 09:52 AM

    To record Salaries:
    Debit Salaries Expense for the amount earned during the period
    Credit Cash for the amount paid
    Credit Salaries Payable if paid in the next period

    To record rent:
    If paying rent in advance the journal entry will be:
    Debit Prepaid Rent for the amount paid
    Credit Cash for the amount paid

    At the end of the period you will need to do an adjusting entry for the used portion of the rent. The journal entry will be:
    Debit Rent Expense for the amount of rent used in the period
    Credit Prepaid Rent for the amount.

    If you are paying month to month the journal entry will be:
    Debit Rent Expense for the amount
    Credit Cash for the amount

    If you are receiving rent revenue then the entries will be:
    Debit Cash for the amount received
    Credit Unearned Rent Revenue for the amount

    At the end of the reporting period the adjusting entgry will be:
    Debit Unearned Rent Revenue for the amount of Rent provided
    Credit Rent Revenue for the amount

    If you are receiving the rent monthly the journal entry will be:
    Debit Cash for the amount
    Credit Rent Revenue for the amount
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Cash Basis vs Accural Basis [ 3 Answers ]

Mostert Music Company had the following transactions in March: a. Sold instruments to customers for $10,000; received $6,000 in cash and the rest on account. The cost of the instruments was $7,000. b. Purchased $4,000 of new instruments inventory; paid $1,000 in cash and owed the rest on account....

Cash Basis versus Accural Basis Income [ 2 Answers ]

Reporting Cash Basis versus Accrual Basis Income Mostert Music Company had the following transactions in March: a. sold instruments to customers for $10,000; received $6,000 in cash and the rest on account. The cost of the instruments was $7,000. b. Purchased $4,000 of new instruments...

Reporting cash basis versus accrual basis income [ 1 Answers ]

Please help me. I am an online student and new to accounting. Forllowing transactions in March. Do both cash basis and accrual basis income a) Sold instrument to customers for $10,000; received $6000 in cash and the rest on account. The cost of the instrument was $7000 b)Purchased $4000 of...

View more questions Search