balance sheet as a current liability until it's earned, when you transfer the amount earned to revenue.
Revenue
No, it is an owner's equity account.
Revenue account
The revenue account.
balance sheet as a current liability until it's earned, when you transfer the amount earned to revenue.
Revenue
No, it is an owner's equity account.
No, it is an owner's equity account.
Revenue account
The revenue account.
No. It's a liability account.
unearned rent
Rent is a revenue account and like all revenue accounts it has credit balance as normal balance.
Equipment is a long term asset account available for business to generate economic revenue.
If Rent Revenue is shown in income statement but if that revenue is still receivable in accrual accounting system then it will shown under balance sheet at asset side as well.
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.