Sharing rent on warehouse space

mclain_enterprises · ‎March 26, 2020

I share the rent on my warehouse with an investor. We are both on the lease but my company pays the rent and my investor wire transfers his part to my bank account monthly and sometimes prepaid a couple months. How do I handle this without overstating income or my rent expense?

Rustler · ‎March 26, 2020

Pay your rent using rent expense just as you would if you are alone in this

When the deposit hits, set the source account to an income account you create called rent share income or something like that

If they send more than one months rent, split the deposit between rent share income and a liability account called pre-paid rent. Monthly do a journal entry, debit pre-apid rent and credit rent share income for the amount of that months rent

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Rustler · ‎March 26, 2020

Pay your rent using rent expense just as you would if you are alone in this

When the deposit hits, set the source account to an income account you create called rent share income or something like that

If they send more than one months rent, split the deposit between rent share income and a liability account called pre-paid rent. Monthly do a journal entry, debit pre-apid rent and credit rent share income for the amount of that months rent

mclain_enterprises · ‎March 26, 2020

Thank you so much Brother. You are a life saver & I appreciate you invaluable knowledge.

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Sharing rent on warehouse space