Question

9. Alpha recorded the prepayment of one year of rent as a debit to rent expense and a credit to accounts payable. Alpha failed to record an AJE at the end of the year when there were still two months of rent remaining in the lease. 10. Alpha failed to record the return of inventory to the manufacturer for a credit (periodic inventory system). --- A. En 24 h

Please provide journal entries for the accounts used and if accounts will will be understated, overstated or no effect for assets, liabilities and net income.

Answer 1

Incorrect Journal Entry that have bee made:

Date	Account Name	Debit	Credit
	Rent expense
	To Accounts Payable

Correct Entry that should have been made :

Date	Account Name	Debit	Credit
	Prepaid Rent
	To cash

Adjusting journal entry that should have been made:

Date	Account Name	Debit	Credit
	Rent Expense
	To Prepaid Rent

Effect On Accounts:

Asset	Liability	Net Income
Underapplied	Overapplied	Under applied