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areedy
Joined: 25 Jun 2008
Posts: 49
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| Posted: Tue Jul 08, 2008 9:40 am Post subject: Unearned rent |
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My company received a 6-months prepaid rent for the building space. I am aware of how to treat the unearned rent, but i have been trying to put all this in QuickBooks and it does not come out right. I have done the following:
Cash (dr)
Unearned rent (cr)
Then to turn unearned rent into revenue:
Unearned rent (dr)
Office rent (cr)
Am i doing something wrong?
Any help will be greatly appreciated. |
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Richard Noot
Joined: 20 Aug 2005
Posts: 878
Location: Minnesota
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| Posted: Tue Jul 08, 2008 10:13 am Post subject: Re: Unearned rent |
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areedy wrote: My company received a 6-months prepaid rent for the building space. I am aware of how to treat the unearned rent, but i have been trying to put all this in QuickBooks and it does not come out right. I have done the following:
Cash (dr)
Unearned rent (cr)
Then to turn unearned rent into revenue:
Unearned rent (dr)
Office rent (cr)
Am i doing something wrong?
Any help will be greatly appreciated.
The credit should be to a income account not an expense (office rent) |
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stasia2003
Joined: 25 Feb 2008
Posts: 199
Location: FL
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| Posted: Tue Jul 08, 2008 11:45 am Post subject: Re: Unearned rent |
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areedy wrote: My company received a 6-months prepaid rent for the building space. I am aware of how to treat the unearned rent, but i have been trying to put all this in QuickBooks and it does not come out right. I have done the following:
Cash (dr)
Unearned rent (cr)
Then to turn unearned rent into revenue:
Unearned rent (dr)
Office rent (cr)
Am i doing something wrong?
Any help will be greatly appreciated.
Hi there. It looks correct but for the credit to Office Rent just change the account name to Rental Income or Rental Revenue. That should help narrow down the confusion for you. |
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