This payment of the cash was recorded as an asset, Prepaid Rent. The purpose of the new lease accounting standard is to have a more faithful representation of the lessee's rights and obligations.Assets purchased are not represented through Purchases but with the name of the Asset. Journal Entry: (When Assets are Purchased). Example:. ✓ Liabilities are debts owed to outsiders (creditors). Journal Entries for Credit purchase and Cash purchase with simple examples. End of the year journal entry on December 31 to record depreciation expense. End Book Value = Cost of Asset – Accumulated Depreciation.