Question

rent received in advanced 500​

Answer 1

Explanation:

The rent repayment is calculated as follows.

Period of rent prepayment = 3 months

Amount paid = 3,000

Period of accounts = 1 month

Rent prepayment for the period = 3,000 x 1/3 = 1,000

This must now be become an expense in the income statement for April, the pre paid rent accounting is as follows:

Prepaid rent journal entry – Rent expense for April

Account Debit Credit

Rent expense 1,000

Prepaid rent account 1,000

Total 1,000 1,000

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