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Prepaid rent received is money "your company" has "received" from a customer to pay rent for "x" amount of time, or prepaid.
Prepaid Rent Received is actually an "income" or "revenue" if you are renting out a building, home, apartment, whatever.
This is just the opposite of Prepaid Rent that is used in the expense. Instead of paying rent, you are receiving it.
Say you own a house you are renting out and the tenant decides to pay 6 months rent in advance, you get the money, but it is recorded as a prepaid rent received, as you now still owe him the full six months rent, you are now obligated to the tenant for the next six months and therefor prepaid rent received (similar to unearned revenue) is a liability for you until the rent is used up.
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How do you pass journal entry for prepaid rent?
Prepaid rent A/c Dr To, Rent A/C
Is prepaid rent accrued?
Yes, prepaid rent is accrued.
How do you pass an entry for Prepaid rent?
prepaid rent a/c dr to rent a/c
How do you record prepaid rent?
[Debit] Prepaid Rent xxxx [Credit] Cash / bank xxxx
What is the journal entry of prepaid rent?
1. [Debit] Prepaid Rent xxxx [Credit] Cash xxxx
How do you pass journal entry for prepaid rent?
Prepaid rent A/c Dr To, Rent A/C
Is prepaid rent accrued?
Yes, prepaid rent is accrued.
How do you pass an entry for Prepaid rent?
prepaid rent a/c dr to rent a/c
Is prepaid rent is what type of asset?
Prepaid Rent is a Current-Asset account. Since it deals with "prepaid" it will expire on a regular basis and is not a "fixed" asset. Each month (or whatever terms the rent may be paid) the amount is removed from Prepaid-Rent and placed in Rent Expense.
Rent expense cost of sales?
Rent expense is considered an overhead cost, not a cost of sales since it does not directly relate to the merchandise you are selling. Any prepaid rent (such as at the beginning of the month) should receive a journal entry debit to an account called prepaid rent, and at the end of the month should be credited to rent expense. Hope this helps.
How do you record prepaid rent?
[Debit] Prepaid Rent xxxx [Credit] Cash / bank xxxx
What is prepaid rent?
Prepaid rent is when you pay your rent ahead for a length of time, either as a deposit or as regular rent. Sometimes you can get a discount based on how much rent you pay ahead.
What is the journal entry of prepaid rent?
1. [Debit] Prepaid Rent xxxx [Credit] Cash xxxx
What is the normal balance for prepaid rent?
Prepaid rent is a rent paid in advance so it is current asset and it will have debit balance as normal balance.
What is the difference between prepaid rent and rent expense?
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
Is prepaid rent an debit or credit?
prepaid rent is rent paid before it is due so it is current assets because it's benefit will be taken in future.
List Prepaid expenses on balance sheet?
Prepaid Rent, Prepaid Insurance, and Prepaid Interest... maybe? Check it out on Investopedia.com
