A B CDEF G H REVIEW THE T-ACCOUNTS As you prepare your entries, notice that the T-accounts at right will update, as appropriate. Correct amounts will turn green. Be sure to compare the T-accounts for the balance sheet and income statement approaches, and notice that the ending balances are the same under each technique. 3 5 Prepaid Rent 24,000 Initial entry for Balance Sheet Approach Date Accounts Debit Credit Nov. 1 Prepaid Rent 24,000 Cash 24,000 Prepaid office rent for the next 6 months 7 24,000 8 9 Rent Expense 10 11 Adjusting entry for Balance Sheet Approach 12 Date Accounts Debit Credit 13 Dec. 31 Account to be Debited 14 Account to be Credited 15 Adjust prepaid rent to reflect expired portion 16 17 Initial entry for Income Statement Approach Prepaid Rent nahi Problem Prepaid Rent 16 Initial entry for Income Statement Approach 17 Date Accounts 18 Debit Credit Nov. 1 Rent Expense 19 24,000 Cash 20 24,000 21 Prepaid office rent for the next 6 months Rent Expense 24,000 22 24,000 24 23 Adjusting entry for Income Statement Approach Date Accounts Debit Credit Dec. 31 Account to be Debited 25 26 Account to be Credited 27 Adjust prepaid rent to reflect unexpired portion 28