9/9/2023 0 Comments Monthly expenses template![]() Accounting for rent expense differs under the cash basis and accrual basis of accounting. In bookkeeping, when a corporate lessee pays rent, the office rent expense account is debited and the cash account is credited. ![]() However, this expense in most organizations may trend downward over time as a greater proportion of their employees work from home. ![]() After the cost of goods sold and compensation expenses, rental expenses are one of the larger expenses reported by most organizations. Rent expense is usually recorded on the income statement and allocated between the selling and administrative, or production portions of the statement. Depending on the contractual agreement, the landlord may require that a tenant (lessee) pay extra cash to cover things like facilities management, maintenance, security, and insurance. This is the sum of money a corporate tenant or individual pays a landlord on a periodic basis, either every month or quarterly. Rent expense is the cost of occupying a rental property during a reporting period. ![]()
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