Respuesta :
If the rent for the upcoming year is paid in cash, this is an assumption. Prepaid rent should be debited and cash should be credited.
What are debits and credits?
To record changes in value brought on by company transactions, debits and credits are entries made in account ledgers in double-entry bookkeeping. When money is transferred into or out of an account, it is represented by a debit entry instead of a credit entry. From credited accounts to debited accounts, value is transferred with each transaction. When a renter submits a check for rent to a landlord, they could credit the bank account from which the check is drawn and debit the rent expense account. A debit would be made for the bank account where the check is deposited, and the landlord would similarly credit the tenant's account for rental income.
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