On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the months of June, July, August, and September, was received in cash from the company's tenant. The journal entry to record the effects of the four months of rent collected in advance on June 1, 2019 is:

Question

Ignacio Newman

Business

29 April, 03:17

On June 1, 2019, an advance rent payment of $8,400, representing a four-month prepayment for the months of June, July, August, and September, was received in cash from the company's tenant. The journal entry to record the effects of the four months of rent collected in advance on June 1, 2019 is:

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Cristal Norris · Answer 1

The journal entry is shown below:

Cash A/c Dr $8,400

To Prepaid Rent $8,400

(Being advance cash is received for four-month rent)

Since we have to record the journal entry, so we debited the cash account as the advance cash is received and credited the prepaid rent account as the cash is received for four-month rent