prepaid revenue is debited and revenue is credited
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
1. [Debit] Prepaid Rent xxxx [Credit] Cash xxxx
prepaid expenses are those expenses for which cash is paid in advance but if there is no cash payment then that is not prepaid expense and hence no entry required.
Prepaid rent A/c Dr To, Rent A/C
debit unexpired rentcredit prepaid rent
The journal entry for prepaid income is a debit to the Cash account and a credit to the Unearned Revenue account. The Unearned Revenue account is a liability. The rationale for such an entry is that this is income received in advance. This means that the income has not been earned since the services have not yet been performed. When the services have been performed it is appropriate to recognize the revenue and offset the liability account, unearned revenue.
Accrued Revenue is a term that I rarely see, though it is an Asset and should be treated as such. Accrued Revenue would be treated similar to an Account Receivable. The Journal Entry would be a Debit to Accrued Revenue and a Credit to Revenue.
As it is a advance receipt the journal entry would be cash dr. to deferred revenue
1. [Debit] Prepaid Rent xxxx [Credit] Cash xxxx
prepaid expenses are those expenses for which cash is paid in advance but if there is no cash payment then that is not prepaid expense and hence no entry required.
Prepaid rent A/c Dr To, Rent A/C
debit unexpired rentcredit prepaid rent
Debit prepaid expensesCredit cash / bank
Debit accounts receivableCredit sales revenue
Debit revenue accountCredit income statement
debit cashcredit professional fee revenue
No journal entry for net income it is the difference between total expenses and total revenue and it is the balancing figure