Ang Limited paid three months of rent for $36,000. Two of these months were paid in advance and one month was paid for the current month's rental expense.
How would Ang Ltd record this in their accounting information system?

Question

Ang Limited paid three months of rent for $36,000. Two of these months were paid in advance and one month was paid for the current month's rental expense.

How would Ang Ltd record this in their accounting information system?

Accepted Answer

DR            Rent expense                  $12,000 
 DR            Prepaid rent                    $24,000 
             CR                      Cash                           $36,000

Answer

DR          Prepaid rent                     $36,000 
           CR                     Cash                            $36,000

Answer

DR            Rent expense                  $24,000 
 DR            Prepaid rent                    $12,000 
             CR                      Cash                           $36,000 
             CR                      Cash                           $36,000

Answer

DR               Rent expense             $36,000 
               CR                 Cash                            $36,000

Crowdly

Ang Limited paid three months of rent for $36,000. Two of these months were paid...

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