Chapter 8 Working with Balance Sheet Accounts - Apply Your Skills

Create a Journal Entry and Recurring Transaction

In this exercise, you will create the journal entry to expense the prepaid rent on Sadie's salon and make it recurring for six months. You will also create a recurring transaction for prepaid storage.

1. Record the September expense by creating a journal entry dated 9/30/2026 for one-sixth of the prepaid Building & Property Rent, which was $3,300 paid in July 2026.

2. Create a recurring expense journal entry for $550 for the last dav of each month for October 2026 through February 2027.

3. Create a recurring expense journal entry for one-third of the prepaid storage, which was paid on September 22, 2026. Make it for the last day of each month for the following three months.