General entry for Accrued Rent
Q: What is the general entry for accrued rent?
A: The journal entry for accrued rent will be:
DR Rent expense $1,000
CR Accrued Rent $1,000
What we're doing above is showing that we owe for the rent expense. We record the expense occurring (debit) as well as the liability (accrued rent - credit).
When the rent is paid we record:
DR Accrued Rent $1,000
CR Bank $1,000
Bank (asset) is decreasing so we credit it. And we cancel out the liability with a debit to accrued rent.
For more info and examples of accrued expenses see these lessons:
Accrued Expenses - part 1
Accrued Expenses - part 2
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