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First let me say there is no account referred to as "Rent Payable". Rent is an operating expense for a business, you have two main accounts that deal with rent. 1 is Prepaid Rent, the other is Rent Expense. Prepaid Rent is used if the company pays their rent in advance. Prepaid Rent is an Asset. For example a company pays 6 months rent in advance, the journal entry is
Prepaid Rent (debit) $$$
Cash (credit) $$$
Each month as the rent is "used up" an adjusting entry must be made. Since the cash has already been paid the entries move the amount needed of that month from one account to another. In this case we want to move it from the asset account Prepaid Rent to the Expense account Rent Expense the entry is;
Rent Expense (debit) $$$
Prepaid Rent (credit) $$$
As you notice since prepaid rent is an asset account it has a debit balance, therefore to "remove" the amount of rent used we must credit that amount.
If the company pays their rent monthly on a cash basis the journal entry is simple and straight forward.
Rent Expense (debit) $$$
Cash (credit) $$$
You will not see an account called "Rent Payable" as a payable account is a liability account and expense are not classified as a liability but an operating expense.
What else can I help you with?
What financial sheet do i put rent payable on?
Rent payable is recorded on the balance sheet under current liabilities. It represents an obligation to pay rent that is due within the next year. This entry reflects the company's outstanding debts related to leased property, impacting the overall financial position of the business.
What is payable liabilities in accounting?
Accounts Payable and Notes Payable are liabilities. Accounts receivable - assets All "payable" accounts are "liabilities". This is because a liability is something the company OWES, a payable is the... Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts payable is where you record such liabilities. If it's a payment that will be made in more than one year.
Is interest payable a long term liability or current liability?
A payable (such as interest payable) can be either a long term or current liability, to find out which consider the definitions of each. Current liability is any liability that will be fully paid within one year (or less) or one accounting period. Long term liability is any liability that will take more than one year or accounting period to be fully paid. For the most part, interest payable is current, as it usually is required to be paid quickly, however, that is not always the case.
Is bonds payable a current liability?
Yes, Salaries Payable would be considered a Current Liability as the company will pay the amount off in less than one year (or one accounting period). Current Liability as any liability that will be... Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts payable is where you record such liabilities. If it's a payment that will be made in more than one year.
Are bill payable is current liability?
Yes, bill Payable would be considered a Current Liability as the company will pay the amount off in less than one year (or one accounting period). Current Liability as any liability that will be...Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts payable is where you record such liabilities. If it's a payment that will be made in more than one year..
What are the accounting entries of rent receivable that is prepared in the next financial year?
Adjusting entries are the accounting entries of rent receivable that are prepared at the end of the financial year. As a result, adjustments are made for the new financial year based on the previous year.
What is payable liabilities in accounting?
Accounts Payable and Notes Payable are liabilities. Accounts receivable - assets All "payable" accounts are "liabilities". This is because a liability is something the company OWES, a payable is the... Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts payable is where you record such liabilities. If it's a payment that will be made in more than one year.
Is interest payable a long term liability or current liability?
A payable (such as interest payable) can be either a long term or current liability, to find out which consider the definitions of each. Current liability is any liability that will be fully paid within one year (or less) or one accounting period. Long term liability is any liability that will take more than one year or accounting period to be fully paid. For the most part, interest payable is current, as it usually is required to be paid quickly, however, that is not always the case.
Is saleries payable a current liability?
Yes, Salaries Payable would be considered a Current Liability as the company will pay the amount off in less than one year (or one accounting period).Current Liability as any liability that will be fully pad for in one year (or less).
Is bonds payable a current liability?
Yes, Salaries Payable would be considered a Current Liability as the company will pay the amount off in less than one year (or one accounting period). Current Liability as any liability that will be... Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts payable is where you record such liabilities. If it's a payment that will be made in more than one year.
Are bill payable is current liability?
Yes, bill Payable would be considered a Current Liability as the company will pay the amount off in less than one year (or one accounting period). Current Liability as any liability that will be...Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts payable is where you record such liabilities. If it's a payment that will be made in more than one year..
Is bonds payable current liability?
Yes, Salaries Payable would be considered a Current Liability as the company will pay the amount off in less than one year (or one accounting period). Current Liability as any liability that will be... Yes, Current Liabilities are liabilities that will be paid off in one year or less. Accounts Payable is where you record such liabilities. If it's a payment that will be made in more than one year.
Can short-term notes payable be replace as an account payable?
Generally as a rule this does not happen. Notes Payable refer to a liability that will be paid off in more than a year. An account payable is a liability that will be paid off in less time than that, within one year or less (or accounting period). It is generally easier to take an account payable and convert it into a note payable and really pointless to do the reverse.A note payable involves a promissory note, while an account payable does not. Even if the company chooses to pay off the note payable earlier than expected, there is no real reason to convert it from a note payable to an account payable, if they wish to do this to try and save on interest expense that is pointless as well, if the note is paid off early, then the company will not be charged the full interest anyway.Now to really specify the answer to your "exact" question. A short-term note is an account payable. They are one in the same. A short-term note payable is a payable that is expected to be paid off with in one year or less.
Mortgage payable is a current liability?
No, although Mortgage Payable would be a liability a mortgage is generally not a payable that could or would be paid off in less than one year or one accounting cycle. Current liability refers to just that, a liability that will be paid off in one year or less, while a Long-term liability takes longer, such as a mortgage payable. More commonly referred to as a "note payable" a mortgage payable for a business would be a Long-term liability. A mortgage would be what the company is paying to "purchase" their building or land. The property itself that the mortgage is on of course is the asset.
What is the purpose of reporting current maturities of long term debt?
Purpose to report is to show that how much portion of long term debt will be paid or payable in current accounting year that's why that portion became current liability and not long term liability.
What are different kinds of liability?
There are several types of liabilities but for financial accounting liabilities are generally split into current and long term liabilities. Current liabilities are accounts payable and loans that payment is made on demand. Long term liabilities are debts that payable more than a year out.
Bond payable a current liabilities?
is a two-year notes payable current liabiltiy
