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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.
What else can I help you with?
Give at least 2 examples of adjusting entries?
I will give two examples but first I will give the original transaction then the "adjusting entry" that would be used.Prepaid Rent, many businesses that "rent" their buildings prepay for months at a time. Say you pay $5,000 a month for rent and you pay Six Months in Advance. It first goes on the books as follows.Prepaid Rent (Debit) $30,000Cash (credit) $30,000After the first month when the company reconciles their books, they need to show that one month of this rent has been "used up", this is an adjusting entry and is as followsRent Expense (debit) $5,000 (we only used one month)Prepaid Rent (credit) $5,000This "adjustment" is made monthly.The second one I will use isYour company purchased a computer on account. When you purchased the computer on account it became an account payable. You decide to make a payment toward the balance you owe, this will go in as an adjusting entry. The accounts would beAccount Payable (debit)Cash (credit)An adjusting entry is just what it's called, an entry to "adjust" an previous entry to it's current or new state. If you never adjusted entries, such as accounts payable, prepaid expense, etc, then your books would be inaccurate.
Is it legal to be charged 25.00 per day late fee from a property management company?
You can find your answer in your lease agreement. The fee is legal and payable if you signed a rental agreement that specified this amount as a late fee and you paid your rent late.
Is rent a debit or credit?
If you are paying rent it is a debit. If you are a landlord receiving rent its a credit.
What is the journal entry of rent income?
rent due to landlord
Is rent a tax write off in Wisconsin?
Personal rent...no.
What is 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
How is rent expense properly recorded?
Debit Rent Expense xxxx Credit Rent payable / cash /bank xxxx
