Answer to Question #194196 in Accounting for Milan

Question

Debit Supplies Expense

Credit Supplies Inventory

• What does this journal entry mean?

Debit Rental Revenue

Credit Unearned Rent

• What does this journal entry mean?

Debit Prepaid Expense

Credit Cash

• You make an advance payment and pay cash right?

Answer 1

Debit Supplies Expense

Credit Supplies Inventory

It means that you have used some stock or inventory and that has reduced your total inventory and your debit supplies expense to show the amount of inventory that has been used.

Debit Rental Revenue

Credit Unearned Rent

Unearned rent is credited because its liability meaning its rent which has not been received by the landlord and you debit rental revenue because its income on the income statement.

Debit Prepaid Expense

Credit Cash

• You make an advance payment and pay cash right?

Yes it is right.