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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
8-
Our business paid 48.000 TL from the bank for the store it rented for two years on 01.07.2020 . (The entity prepares its financial statements on a monthly basis.) Accordingly, in which account, how and in what amount is the rental expense for July 2020 recognized?
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Expert Solution
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Step 1 : Explanation
Journal Entry
Date | Particulars | L.F. | Debit | Credit |
2020 | ||||
01 July | Prepaid Marketing Sales and Distribution Expenses A/c Dr | 48.000 TL | ||
To Bank A/c | 48.000 TL | |||
( Being rent paid in advance ) | ||||
31 July | Marketing Sales and Distribution Expenses A/c ( 48.000 TL / 24 months ) Dr | 2.000 TL | ||
To Prepaid Marketing Sales and Distribution Expenses A/c | 2.000 TL | |||
( Being Marketing Sales and Distribution Expenses charged for the month of July) |
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