Rent expense typically goes on the income statement. On the balance sheet, rent can be a liability for future rent owed. Prepaid rent is an asset on the balance sheet. The initial journal entry for prepaid rent is a debit to prepaid rent and a credit to cash. Rent receivable, earned but not yet collected, is also an asset. Rent revenue goes on the income statement. Revenue is income before expenses are deducted. Rent affects assets and liabilities on the balance sheet when paid or owed.
Is rent revenue on the balance sheet?
Rent expense goes on the income statement. On the balance sheet, rent can be a liability for rent owed in the future. Prepaid rent is an asset on the balance sheet. The initial journal entry debits prepaid rent and credits cash. Rent receivable, earned but unpaid, is also an asset. Rent revenue goes on the income statement. Revenue is income before expenses are deducted. When paid or owed, rent affects assets and liabilities on the balance sheet.
Where is rent revenue recorded?
Rent revenue goes on the income statement. Prepaid rent is an asset on the balance sheet. The initial journal entry debits prepaid rent and credits cash. Rent receivable, earned but unpaid, is also an asset. Revenue is income before expenses are deducted. On the balance sheet, rent can be a liability for rent owed in the future. When paid or owed, rent affects assets and liabilities on the balance sheet.