Question

2. Assume the same facts as in (1) above, except the bookkeeper made the following entry on April 1: Dr. 18,000 Rent expense
Prepayments As Corporation leased a building for one year on April 1 for SIS,000. The company or the entire year on April 1.
4 Adjusting entries. Enter the correct adjusting entries for the following items provided. If no entry is required, write NO
for one year on April 1 for $18,000. The keeper made the following entry on April 4-5. Adjusting entries. ере For each of the
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Answer #1

Question number 2

a)Accumulated Rent Expenses from April to Dec 31

Rent Expenses =1500*9

                           =13,500

Prepaid Rent Balance

Total rent paid for 12 months 18000

Total accumulated rent 13500

Balance in Prepaid rent 4500

B)

Prepaid Rent
Debit Credit
1-Apr 18,000
31-Dec 13500
4500 Bal
Rent Expenses
Debit Credit
1-Apr 18,000
31-Dec 13500
Bal 4500

C)Journal Entry to adjust the Prepaid Rent and rent Expenses to the accumulated bases

Adjustment for Prepaid Rent
31-Dec Rent Expenses 4500
Prepaid Rent 4500
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