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After the year end, an auditor noticed that VHM Inc. accidentally recorded a rent expenditure of $55,000 as an expense instead of properly recording it
After the year end, an auditor noticed that VHM Inc. accidentally recorded a rent expenditure of $55,000 as an expense instead of properly recording it as a prepaid. The expenditure was made on the last day of the fiscal period, May 31, 2016. Write the journal entry that should be recorded to correct the prepaid rent account. Assume the tax rate is 31%.
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