Date More Examples of Journal Entries Accounting Equation Double Entry Recording of Accounting Transactions On December 31, 2018, Company Y Ltd paid the salaries for January 2019, amounting to $ 10,000 in advance to the employees of the company. For example, assume that office space is leased, and the terms of the agreement stipulate that rent will be paid within 10 days after the end of each month at the rate of $400 per month. Entry to be made. January 3 Equipment costing $830,000 was purchased. Journal entries are representations of business transactions. Results of Journal Entry. Paid $1,500 rent. Entry to be made. Example #2. The company will pass this adjusting journal entry every month for the next 12 months to prepare and present the correct monthly financial statement of the company, after which the balance of prepaid rent and insurance account will become nil.. Under a two-entry system, accountants debit rent expense and credit rent payable. or. Suppose a business rents premises and has to pay a rent deposit of 1,000 to the landlord. In a single journal entry system, accountants debit rent expense and credit cash. Q: Prepare the journal entry for the following transaction: Paid rent $200. 2. The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. Rent Expense Journal Entry Example. A: The rent expense journal entry is not too complicated: DR: Rent.....$200 CR: Bank / Cash.....$200 Probably the easiest part of working out the journal entry is the cash (or bank). Credit:- Rent Payable Account. Accountants record the entries into the journals when the event occurs in a business’ normal operations. Rent was paid in advance for a full year totaling $750,000. The journal entries for the flow of production costs are the same with process and job costing. b) In case of unpaid rent:-Type of voucher to be prepared:- Journal voucher. These are both asset accounts and do not increase or decrease a company's balance sheet. Rent Payable Journal Entry Example On 31 December 2014 Rent for the month of December amounting $ 20,000 to be paid in January, 2014 shall be recorded as under. Rent Deposit Accounting Journal Entry Example. Prepaid rent is rent paid prior to the rental period to which it relates, so the tenant should record on its balance sheet the amount of rent paid that has not yet been used.. Expenses payable Account. Outstanding Expenses Account. Create journal entry when I pay bill: Debit Prepaid Rent Expense by amount of rent and credit Equity Investment Payable by same amount (FYI - this is an LLC). At the end of the month, I then will debit Rent Expense and Credit Prepaid Rent. 1. Debit:- Rent Paid Account. Overview of Prepaid Rent Accounting. or. Debit:- Rent Paid Account. 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