A typical scenario with prepaid rent is mailing the rent check early so the landlord receives it by the due date. If all details of a contract are the same, organizations record the same amount for lease expense under ASC 842 as …

The income summary is used to transfer the balances of temporary accounts to retained earnings, which is a permanent account on the balance sheet. Permanent accounts track activities that extend beyond the current accounting period. They’re housed on the balance sheet, a …