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A) In November you pre-paid $8,000 of December rent. Make an adjusting journal entry dated 12/31/17 recording rent expense as you have used this pre-paid
A) In November you pre-paid $8,000 of December rent. Make an adjusting journal entry dated 12/31/17 recording rent expense as you have used this pre-paid expense.
B) Choice Communications has a 40% tax rate. After recording the above entries, use pretax income to find Choices tax expense and make an adjusting entry dated 12/31/17 to record the tax expense. Also notice that there is tax-exempt interest income listed in the chart of accounts. There are no temporary differences this year.
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