Rented an office and paid three months rent in advance to property Management check #001 $4,500. How would this journal entry be posted to the general journal.
To post the journal entry for paying three months' rent in advance, you would follow these steps:
1. Identify the accounts to be debited and credited:
- Debit: Prepaid Rent account
- Credit: Cash account
2. Determine the amounts for each account:
- The prepaid rent amount is $4,500, which should be debited.
- The cash amount paid is also $4,500, which should be credited.
3. Create the general journal entry:
- Date: [date of the transaction]
- Account Debit: Prepaid Rent ($4,500)
- Account Credit: Cash ($4,500)
The final journal entry would look like this:
Date: [date of the transaction]
Account Debit: Prepaid Rent $4,500
Account Credit: Cash $4,500
Please note that it is important to consult with an accountant or follow your company's specific accounting policies and principles when posting journal entries to the general journal.
To post the journal entry for renting an office and paying three months' rent in advance, follow these steps:
1. Identify the accounts involved: In this case, we have the following accounts:
- Office Rent Expense
- Prepaid Rent (an asset account)
- Cash or Bank
2. Determine the debits and credits:
- The office rent expense increases, so it will be debited.
- Prepaid rent increases, so it will be debited.
- Cash or Bank decreases, so it will be credited.
3. Write the journal entry:
- Debit Office Rent Expense for the amount paid upfront. In this example, it would be $4,500.
- Debit Prepaid Rent for the same amount ($4,500).
- Credit Cash or Bank for the amount paid upfront ($4,500).
The completed journal entry will look like this:
Date | Account | Debit | Credit
---------------------------------------------------
XX/XX | Office Rent Expense | $4,500 |
| Prepaid Rent | $4,500 |
| Cash/Bank | | $4,500
Please note that the specific date of the entry should replace "XX/XX" in the table above. Also, make sure to verify the correct account names and numbers used in your own accounting system.