Question

Required information [The following information applies to the questions displayed below.) On November 1, 2019, Wenger Co. paid its landlord $4,080 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2020, at which time the contract may be renewed. Required: a-1. Prepare the horizontal model to record the six-month advance rent payment on November 1, 2019. (Use amounts with + for increases and amounts with - for decreases.) Balance Sheet Income Statement Assets Liabilities + Stockholders' Equity Net Income = Revenues

Answer 1

If the year ended 1 November, 2019 Balance Sheet Income Statement Stockholders' Equity Liabilities + Net Income Revenues Expenses Assets Cash Prepaid Rent = + -4080 +4080 + If the year ended December 31, 2019 Balance Sheet Income Statement Stockholders' Equity Liabilities + Net Income Revenues Expenses Assets Cash Prepaid Rent + -4080 +2720 + -1360 -1360 = 1360

I have answered 2 solutions depending upon the date.

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