Question

If rent payment each month is $28,000 and the deferred rent schedule shows $19,465 per month, what are the journal entries for each month? For both the rent expense journal entry and the deferred rent journal entry.

Answer 1

Answer. Given Deferred rent expense = $19,465

rent payment = $28,000

Since rent expense is less than rent payment then it is deferred rent asset.

Journal entry for Rent expense is

Rent expense A/c . Dr. $28,000

To Bank A/c . $28,000

(Being rent expense recorded)

Journal entry for deferred rent adjustment

Deferred rent liability. A/c. Dr . $8,535

To Rent expense A/c. $8,535 (Being adjustment for decrease in expense)

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