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The expense is generally divided on the income statement between the production and selling administrative sections.
Rent expense in income statement. Under the accrual basis of accounting the account rent expense will report the cost of occupying space during the time interval indicated in the heading of the income statement whether or not the rent was paid within that period. Rent that has been paid in advance is shown on the balance sheet in the current asset. Rental expenses are often subject to a one or two year contract between the. Rent expense is typically allocated between the selling and administrative and production portions of the income statement.
Alternatively the entire amount may be charged to the selling and administration part of the income statement.
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