Question

On September 1, Big Fan of Toledo prepaid six months of rent, $3,300. Requirements 1. Record the journal entry for the September 1 payment. 2. Record the adjusting entry required at September 30. 3. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances at September 30. (Ignore the Cash account.)

Short answer

Answer

Journal entries are as follows:

Date	Accounts and Explanation	Debit	Credit
September 1	Prepaid Rent	$3,300
	Cash		$3,300
	To record payment of advance rent

Step-by-step solution

Explanation on Prepaid Rent

Prepaid rent indicates the advance amount of rent paid by the entity.

Explanation on Journal Entry

The advance rent payment will be recorded by debiting prepaid rent and crediting cash account by $3,300, respectively.