Question

Hello, Can someone help me figure these problems out. Also, if you can, help me understand??

Workshop 2 Problems Student Q Search Shoot + View Doo Home Insert Page Layout Formulas X Cut Calitri (ody) 12 . Paste Format B IU. . 013 X V fic Data AA .A Review = - Ep Wrap Text Good Custom B y Autom. AY - Morge & Carter $ % ) A Conditional Format Fermeros To Check Cell Insert Delete Format Clear Fits L M N O Points: & items 3 pts. each-24 pts. Total 1 2.4 Recording Accrual & Deferral Events in the Acceunting Equation 2 Background information on October 2, 2019 Mickey Company paid Donald Rentals S5,800 for a 12 month warehouse lease furnt Date Transaction 10/1/10 Recand the deferral of the Rental 12/31/19 Record the adjustment for rent expense as of December 31, 2019 Mickey Company Accounting Equation D abilities $ $ Date Transaction 01/19 Record the Operral of the Rental income 12/31/19 Recand the adjustment for rent Peas of December 31, 2010 Donald Rentals Accounting Equation Liabilities Stockholders Equity Prepaid Rent - named Revenue + Common Stock Retained Farnin 31 H ullesores 33 Accia Versus Cash-Rasis Accounting 37 The Accrual Bas 39 Principes d sunting MINT There are examples of populdren and also upewned revenue rent Problem 2.1 Problem 2.2 Problem 2.3 Problem 24 Problem 2.5 Problem 2.6 + Ready E M - + 100%

Answer 1

	Asset			=	Liabilities	+	Stockholders equity
Event	Cash	+	Prepaid rent	=	Liabilities	+	Common stock	+	Retained earning
1	-5800		5800
2			-1450						-1450	Being rent expired for 3months out of 12 month period (1Oct-31Dec )calculated as 5800*3/12 = 1450
	-5800	+	4350	=	0	+	0	+	-1450

working:

In event 1,Rent is paid in advance for a period of 12 months that is not yet accrued so same is credited to prepaid rent which is an asset as advance money is paid for services yet to be availed .

In event 2,out of amount paid above ,services for 3 months has been provided thus out of prepaid rent paid rent expense for 3 months has been expired.