Adjusting journal entry—prepaid rent (Learning Objective 2) 5–10 min.

Julie’s Flower Shop’s Prepaid Rent balance is $4,500 on July 1. This prepaid rent represents six months’ rent. Journalize and post the adjusting entry on July 31 to record one month’s rent. Compute the balances of the two accounts involved on July 31.

AppendixLO1