June 1: Rented office space and paid three months’ rent in advance, $3,000,

Question

cheque 601.

Ans: Rent expense (DEBIT)
Cash (CREDIT)

adjustment:
a) One month’s rent had expired.

i think it will be:

prepaid rent (DEBIT $2000)
rent payable (CREDIT $2000)

CAN U CHECK IF THESE ARE RIGHT PLZ! THNX

Answer 1

The rent is only expensed when it used.

When you pay for rent in advance you are paying for prepaid rent.

Entry #1
Prepaid Rent, $3,000 Debit
Cash, $3,000 Credit

Adjustment Entry #1 at End of Month
Rent Expense (Debit 1/3th of $3,000)
Prepaid Expense (Credit the value above)

Hope I helped.

Answer 2

Hey!!! thnx zeeshan...this gave me the opportunity to edit my other entries similar to this...thnz ^_^