October 30, 2016 admin

Prepaid Expenses—Rent

Assets

PREPAID EXPENSES—RENT		ASSET ACCOUNT
		1530

ACCOUNT EXPLANATION
TRANSACTIONS
COMMENTS

ACCOUNT EXPLANATION

Rent paid in advance that applies to future accounting periods.

TRANSACTIONS

					Jrnl.	Dr.	Cr.

	Payment of three months’ rent of storage lot in advance				CD
		Prepaid Rent				1530
			Cash in Bank—General				1001

	Monthly write-off of prepaid rent				SE
		Rent & Lease Expense				8300
			Prepaid Rent				1530

COMMENTS

A subsidiary record, such as Form FMC 61, Prepaid and Accrued Expense Schedule, should support this account and should be used in computing monthly write-offs to expense.
Lease security deposits should be charged to Account 1835, Deferred Charges, Deposits & Other.