agreement between the lessee and lessor specifying the lessee's rights to use the leased property for a given time at a specified rental payment. As rental payments are made, rent expense is charged. When the rental is paid in advance, a prepaid rent account (prepaid expense) that has to be allocated into expense over the rental period is recorded. If the prepayment is for a long-term lease, however, it is recorded as a deferred charge and then
amortized. The amortization entry for a long-term lease is to charge rent expense and credit leasehold.