rent Transactions on wave

KhaledKhaled Member Posts: 3

I rented a shop as barber I gave the landlord four checks to be paid across the year ( Jan, Apr, Jun, Oct). When I record the expense on these months the P&L shows a drop due to the transaction amount. Is these a way to spread the checks over the months. Eg if I pay a $3000 check I want to have it recorded $1000 for Jan, $1000 for Feb, $1000 for Mar.
Can some one expert in accounting help me on how to set this and what Gl accounts I can use.
TIA

edited February 14, 2019 in Accounting

Comments

  • MikegMikeg Member Posts: 299 ✭✭✭

    You can create an account under assets Other Short Term called Prepaid Rent. Do a journal entry to move the amount of rent not incurred to date there. Every month do a journal to move that months rent to expense.
    So for example if you paid them 12,000 and rent is due on the 1st. You would have 2,000 in rent expense and 10,000 in Prepaid Rent. On March 1st Debit rent expense credit Prepaid rent
    Mike G, CPA
    www.mgfinancial.net
    Better Service - Better Pricing

    edited February 14, 2019
  • KhaledKhaled Member Posts: 3

    Thanks Mike for your support that was fantastic.

  • MikegMikeg Member Posts: 299 ✭✭✭

    Your welcome

  • amandakamandak Administrator Posts: 42 admin

    @Mikeg Thanks so much for always being willing to share your expertise with our community - can't tell you how much we appreciate all the effort you put into helping other Wave users!

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