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Deferred rent payable is the sum of the difference between a monthly rent payment and the monthly rent expense of an operating lease that contains escalated payments in future periods. The rent expense is the sum of all rent payments over the term of the lease divided by the number of periods contained in the lease otherwise known as straight-line amortization. This rent expense amount can/may differ from the monthly rent payments. The difference is deferred rent payable.
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What is a deferred rent payable?
Deferred rent payable is the sum of the difference between a monthly rent payment and the monthly rent expense of an operating lease that contains escalated payments in future periods. The rent expense is the sum of all rent payments over the term of the lease divided by the number of periods contained in the lease otherwise known as straight-line amortization. This rent expense amount can/may differ from the monthly rent payments. The difference is deferred rent payable.
Journal entry for rent payable?
[Debit] Rent Expense[Credit] Rent payableWhen rent paid[Debit] Rent payable[credit] Cash / bank
What is the journal entry for deferred revenue?
As it is a advance receipt the journal entry would be cash dr. to deferred revenue
An excess of income taxes expense over income taxes payable for a period is associated with?
a credit to deferred income taxes payable
Why salaries payable is a liability?
Salaries payable is liability because it is incurred but not yet paid and payment is deferred till future time .
What is the journal entry for rent with no cash payment?
Debit rent expenseCredit rent payable
An example of deferred revenue is Unearned Rent?
true
What is journal entry of outstanding rent?
outstanding rent account dabit to Mr ashwin
Is paying rent considered a liability?
If rent is payable then it is liability for business but if rent is already paid then it is not liability but it is expense.
What are the Accounting entries for commissions payable?
rent payable a/c d/r to cash or bank a/c
An example of deferred revenue is unearned rent True or false?
true
Which liability account would hold the balance of rent due but not yet paid?
Rent PayableA payable account is any account that has a balance due that has not been paid yet. Say you owe $500 for one months rent, but want to record it on the books but not pay it, the journal entry would be:Rent Expense (debit) $500Rent Payable (credit) $500It's the same concept as with such payable accounts like, Income Tax Payable, Salary or Wages Payable, etc.Though it is very uncommon to record rent as a payable, usually it is recorded as prepaid (an asset) or as it is paid, not before.
