adjusting entry for Mookie The Beagle Concierge. In anticipation of carrying Mookie The Beagle Concierge branded Inventory, CK charged $432 for 6 months storage locker rental from Lynnes Space to Mookie The Beagle ConciergesVISA credit card on January 1, 2018. So at the end of the accounting period on January 31, Mookie The Beagle Concierge has used 1 month of rent @ $72 ($432/6 months = $72 per month). The balance ($360) is a Prepaid Expense: Prepaid Rent, an asset account with future benefit. Since CK had not recorded anything related to the storage locker rental, an adjusting entry is needed to bring accounts up to date at January 31.

Use these 3 accounts

Rent Expense (Expense)

Prepaid Expenses: Rent (Asset)

VISA Credit Card (Liability)