Accrued Rent

Code: 2122
👁 Views: 155

Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Rent amounts due for the current period not yet paid

Common Journal Entries

Accrue rent at period end

Dr. Rent Expense
Cr. Accrued Rent

Pay accrued rent

Dr. Accrued Rent
Cr. Bank Account

Adjust accrued rent after negotiation

Dr. Accrued Rent
Cr. Rent Expense

Carry forward accrued rent to next year

Dr. Rent Expense
Cr. Accrued Rent

Accrue rent at period end

Dr. Rent Expense
Cr. Accrued Rent

Pay accrued rent

Dr. Accrued Rent
Cr. Bank Account

Adjust accrued rent after negotiation

Dr. Accrued Rent
Cr. Rent Expense

Carry forward accrued rent to next year

Dr. Rent Expense
Cr. Accrued Rent

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 37 Provisions, Contingent Liabilities and Assets
US GAAP ASC 405 Liabilities

❓ Frequently Asked Questions

Q: When is accrued rent recorded?

A: When the building is used during the period and rent has not yet been paid, an accrual is recorded: Dr. Rent Expense, Cr. Accrued Rent.