In: Accounting
Create a journal entry for the following question:
X is renting out one room to Y for $300 each month. On September 29th, 2019 Y paid for the rent from October through December 2019. At the end of the year, Y pays for another 2months from January 1, 2020 to February 2021.
Journal entries are as follows:
Date | Account and Explanation | Debit($) | Credit |
---|---|---|---|
Sept. 29th, 2019 | Cash ($300 * 3) | 900 | |
Rent received in advance | 900 | ||
(Recorded the rent received in advance) | |||
Dec. 31st, 2019 | Rent received in advance | 900 | |
Rent Income | 900 | ||
(Recorded the Rent Income) | |||
Dec. 31st, 2019 | Cash ($300 * 2) | 600 | |
Rent received in advance | 600 | ||
( Recorded the rent received in advance) |