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Level 1

Recording a rent check

We are a small construction company. Currently we are paying $500 monthly to rent a small yard space to store equipment while working on a project. When I write a check for that, the $500 posts to our Rent Expense account.

 

Another company who is working on this job has also started storing materials at this yard and agreed to split the rent with us. Instead of paying the renter directly, they simply gave me a check for half the rent.

 

I am using Quickbooks Pro desktop. I'd like to record this using the Make Deposits window but I'm unsure as to the account to use. I wouldn't post this as a debit to our Rent Expense account, would I? I'm at a loss on this one. If someone could walk me through how to record this transaction I'd be very appreciative.

 

Thanks!

1 Comment
Level 15

Re: Recording a rent check

deposit the 250 you receive and use other income as the source account for the deposit

 

on the P&L income is reduced by expense, so

other income 250

rent expense -500

total expense -250

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