Paying six months’ rent in advance

Transaction

On November 1 a company pays $9,000.00 by check for six months’ rent in advance (November through April).

Assumptions: The company records payments for future periods as an asset and expenses them month by month as they are used up.

Accounts

Tap an account, then choose Debit or Credit and type the amount. × removes a line.

Debit

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Credit

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Debits $0.00Credits $0.00