what is the adjustment entry of rent and salary?
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The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. These are both asset accounts and do not increase or decrease a company's balance sheet. Recall that prepaid expenses are considered an asset because they provide future economic benefits to the company.
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Rant received is an income and rent received inadvance means income not accured but received in advance .
salaryto make an adjusting entry for wages paid to an employee at the end of an accounting period, an adjusting journal entry will debit wages expense and credit wages payable.
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