I\'m having a difficult time with this. Suppose Hoosiers, a specialty clothing s

Question

I'm having a difficult time with this.

Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $24,000 ($2,000/month) in advance on October 1 25. 100 points Required information 1.00 points 1 & 2 Record he necessary entres in the Journal Entry Worksheet beow. no entry s required or a particular ransaction event, se ec o ournal entry required' in ,first account ied View transaction list Journal entry worksheet Record the No journal entry required Accounts payable Accounts Accumulated depreciation receivable Date Debit Credit October 01 Record entry Clear entry View general journal

Explanation / Answer

Answer

There will be no entry for renting space but u have to record the paying of advance rent.

Since its the month starting, all the rent paid will be prepaid as Rent of October will be due in October end and so on and we will adjust the rent expense from prepaid rent.

S. No.

Particulars

Dr. $

Cr. $

Oct 1

S. No.

Particulars

Dr. $

Cr. $

Oct 1

Prepaid Rent 24,000 Bank 24,000 (Being 1 year rent paid in advance)

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