General Journal Entry for Accrued Rent
Q: What is the general journal entry for accrued rent?
To do the journal entry for accrued rent you should first understand what this means.Accrued
means is/are owed or owing.
So accrued rent
means rent owing. It is an accrued expense, a liability
, meaning a debt.
The journal entry for accrued rent will be:DR Rent (expense) $1,000
CR Accrued Rent (liability) $1,000
What we're doing above is showing that we owe for the rent expense. We record the expense occurring (debit) as well as the liability (accrued rent - credit).
When the rent is paid we record:DR Accrued Rent (liability) $1,000
CR Bank $1,000
Bank (asset) is decreasing so we credit it. And we cancel out the liability by debiting accrued rent.
Hopefully that answers your question!
Are other accrued expenses treated differently in the journals? Do you have more questions about accrued expenses? Comment below.
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