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    uscg911's Avatar
    uscg911 Posts: 6, Reputation: 1
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    #1

    Dec 11, 2010, 04:03 PM
    Rent expense on income statement
    If you pay $48,000 of rent in advance on March of 2009 for the period of April 1, 2009 to March 31, 2010, how much do you record in the income statement on December 31, 2009.
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Dec 11, 2010, 04:14 PM

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    uscg911 Posts: 6, Reputation: 1
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    #3

    Dec 11, 2010, 04:22 PM
    Comment on Just Looking's post
    My answer to this question is $36,000. I took $48k and divided by 12 to use the months from April to Dec to include on the Dec 31st income statement. The remaining amount would be recorded as prepaid rent on the balance sheet. Is this correct?
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    Just Looking Posts: 1,610, Reputation: 480
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    #4

    Dec 11, 2010, 04:26 PM

    Perfect. :)
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