Q16SE_1
Question
On October 1, 2018, Kitchen Design paid $15,000 for store rent covering the six-month period ending March 31, 2019.
Step-by-Step Solution
Verified Answer
Date | Account and Explanation | Debit | Credit |
October 1, 2018 | Prepaid Rent | $15,000 |
|
| Cash |
| $15,000 |
| To record advance rent payment |
|
|
1Step-by-Step Solution Step 1: Explanation of Prepaid Rent
Prepaid rent refers to the advance payment of rent expenses.
2Step 2: Explanation of Journal Entry
In order to record the advance payment of rent, the prepaid rent account will be debited, and the cash account will be credited by $15,000, respectively.
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