Journal entry

Information only: August 15: A new one-year lease agreement was signed for a new sporting goods store. The rent is $1,350 per month for the year. The lease begins on September 1 and is effective through August 31 of the next year. A payment of the first month's rent plus a deposit payment of $2,000 was made. (Info only. The deposit remains in Prepaid Rent until the end of the lease)

October 1: Paid October rent on new sporting goods space.