201k views
2 votes
On January 1, Power House Co. prepaid the annual rent of $10,140. Prepare the journal entry to record this transaction.

1 Answer

3 votes

Answer and Explanation:

The journal entry to record the given transaction is shown below:

Prepaid rent Dr $10,140

To Cash $10,140

(Being the prepaid annual rent paid in cash is recorded)

For recording this we debited the prepaid rent as it increased the assets and credited the cash as it reduced the cash so that the proper posting could be done

User JamesClevenger
by
4.0k points