I need to know how to journalize this in a General Journal, but I don't know if it is required to even write down.
Signed a lease agreement to rent office space for $975 per month, beginning Feb 1st. Nothing was paid today. (This happened on Jan 15)
To journalize this transaction in a General Journal, you would follow these steps:
1. Identify the accounts involved: In this case, you would have an expense account for Rent and a liability account for Rent Payable.
2. Determine the amounts to be recorded: The lease agreement is for $975 per month, so you would record the monthly rental amount.
3. Determine the date of the transaction: The lease agreement was signed on January 15th, but the payment is not due until February 1st. As a result, the journal entry should be recorded on January 15th.
The journal entry for this transaction would be as follows:
Date: January 15th
Account Debit Credit
Rent Expense $975
Rent Payable $975
Explanation:
The Rent Expense is debited because it is an expense that will be incurred over time. The Rent Payable is credited because it represents the unpaid rent liability as of the end of the accounting period.
Please note that this is a general example, and it's always advisable to consult with an accounting professional or your company's specific accounting policies and practices to ensure accurate journalizations.