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The above example illustrates how the accounting equation remains in balance for each transaction. As each month passes, a portion of the prepaid rent is recognized as an expense. prepaid rent accounting This is done through an amortization entry that reduces the prepaid rent account and records the rent expense for that month. If you …
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The above example illustrates how the accounting equation remains in balance for each transaction. As each month passes, a portion of the prepaid rent is recognized as an expense. prepaid rent accounting This is done through an amortization entry that reduces the prepaid rent account and records the rent expense for that month. If you …
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