Question

On March 1, Complete Computer Service paid cash of $900 for rent expense for the current month.The journal entry to record this transaction would be:______

Answer 1

The journal entry for Complete Computer Service's rent payment records a debit to Rent Expense and a credit to Cash for $900.

Step-by-step explanation:

The journal entry to record the payment of $900 for rent expense for the current month by Complete Computer Service would be:

• Debit Rent Expense $900
• Credit Cash $900

This entry reflects the decrease in cash due to the rent payment and records the expense for the current period. As this is a cash transaction, the impact is immediate on the company's financial statements, reducing both their cash balance and the equity (as expenses reduce net income).