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A company pays $36.000 for 12 months rent on January 1, recording the prepayment as an asset. The adjusting entry on March 31
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Answer----------True

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Following entry will be made

Adjusting entry
General journal Debit Credit
Rent expense $ 9,000.00
Prepaid rent $        9,000.00

Rent expense will be debited for 3 months @3000 per month.

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