20+ Paid For Rent Journal Entry Pics. Prepaid rent journal entry example showing the double entry bookkeeping and effect on the accounting equation, if a business pays rent quarterly in advance. Since cash was paid out, the asset account cash is credited and another account needs to be debited.

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How to pass journal entry for prepaid expenses. So all asset balance shows debit balance. You prepay $9,000 of rent for six months.

When the rent paid in advance is called prepaid rent, hence it is an asset.

The company paid $1,500 rent. Entry #6 — pgs has a grand opening and makes it first sale. Expenses are always debited, meaning that we make an entry with them on the left side. The entry would depend in the different scenarios which are as follows a the receipt of 1 000 is earned and no accrual has been made cash 1 000 rent income 1 000 to record.