This is as of April 1 I need to journalize - "Paid three months' rent on a lease rental contract, $4,800.

Question

Would I debit rent expense and credit prepaid rent.

Also how would I make this adjustment. Rent expire during April is $1,600.

All for the same problem. I need journalize and make adjustment.

Answer 1

Depending on how you list it, rent paid in advance is an asset
which can be debited either monthly, quarterly, or yearly