Question

Te o Consider the following independent situations for Mystical View (Click the icon to view the indipendent situations.) a. Mystical View had a January 1, 2024 beginning balance in its Prepaid Rent account of $1,700. During the year the company made payments for prepaid rent of $1,500. At the end of the year, December 31, 2024, the balance in the Prepaid Rent account was $600. What was the amount of rent expense for the year? Rent expense for the year = ht

Answer 1

Answer to Requirement a: Calculation of Rent Expense for the Year: Prepaid Rent A/c Balance on Jan.1, 2024 Add: Cash Paid for Prepaid Rent Total Prepaid Rent Less: Prepaid Rent A/c Bal. on Dec.31, 2024 Rent Expense $ $ $ $ $ 1,700.00 1,500.00 3,200.00 (600.00) 2,600.00 So, Rent Expense for the Year is $2600.

Answer to Requirement b: Calculation of Ending Balance of Prepaid Rent Account as of December 31, 2024: Prepaid Rent A/c Balance on Jan.1, 2024 $ 1,100.00 Add: Cash Paid for Prepaid Rent $ 1,300.00 Total Prepaid Rent $ 2,400.00 Less: Rent Expense $ (1,400.00) Prepaid Rent A/c Balance on Dec.31, 2024 $ 1,000.00 So, Ending Balance of Prepaid Rent Account as of December 31, 2024 is $1,000. Answer to Requirement c: Calculation of Beginning Balance of Prepaid Rent Account as of January 1, 2024: Prepaid Rent A/c Balance on Dec.31, 2024 $ 1,100.00 Add: Rent Expense $ 400.00 $ 1,500.00 Less: Cash Paid for Prepaid Rent $ (600.00) Prepaid Rent A/c Balance on Jan.1, 2024 $ 900.00 So, Beginning Balance of Prepaid Rent Account as of January 1, 2024 is $900.