Prepaids
Illustrative Entries
| XX-XX-X9 |
Prepaid Rent |
3,000 |
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| Cash |
3,000 |
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| Prepaid a two-month lease |
| XX-XX-XX |
Rent Expense |
1,500 |
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| Prepaid Rent |
1,500 |
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| To adjust prepaid rent for portion lapsed ($3,000/2 months = $1,500) |