Comments for Rent In Advance

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Jul 19, 2011
Prepaid Rent
by: Anonymous

If you opened a business on a monday and paid 3 months rent up front from your own personal account, you show this and calculate your books for week 1 by entering the following transactions (using 1000 a month example):

DEBIT Prepaid Rent (Current Asset) 3000
CREDIT Capital Contributions (Equity) 3000

CREDIT Prepaid Rent 250 (3 mo / 12 wks)
DEBIT Rent Expense 250

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