When rent is prepaid for several months in advance the debit is to?

1 answer

Answer

1207836

2026-08-18 19:40

+ Follow

When rent is prepaid for several months in advance, the debit is recorded in a prepaid rent account, which is considered an asset. This reflects the company's right to occupy the property for the duration of the prepaid period. As each month passes, the appropriate portion of the prepaid rent is expensed, moving the amount from the asset account to rent expense on the income statement.

ReportLike(0ShareFavorite

Copyright © 2026 eLLeNow.com All Rights Reserved.