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and now its time for landlords to learn how to make invoices for rent that was earned what happens at the end of each month well rental income goes up because the landlord actually earned the rent for the passage of time during the month that the tenant stayed and of course unearned rent goes down because theres less unearned if more is earned so when you make an invoice this will be the result in the chart of accounts and the trial balance now what happens to the tenants balance well the tenants balance goes down the tenants balance goes up when they pay therefore the amount in their records will of prepaid the amount thats unearned thats pre paid by the tenant will decrease during the passage of time and we acknowledge the passage of time and we acknowledge earning the rent at the moment that we make an invoice for example on January 31 we need to create invoice number 1 for Dave and apartment 3a for the rent that Holden the landlord earned during J
