Calco Inc. rents its store location. Rent is $850 per month, payable quarterly in advance. On July 1, a check for $2,550 was issued to the landlord for the JulySeptember quarter. Required:

1. Prepare the Horizontal model and Journal entry for each of the following transactions.
   1. To record the payment on July 1, assuming that all $2,550 is initially recorded as Rent Expense.
   2. To record the adjustment that would be appropriate at July 31 if your entry in a had been made.
   3. To record the payment on July 1, assuming instead that all $2,550 is initially recorded as Prepaid Rent.
   4. To record the adjustment that would be appropriate at July 31 if your entry in c had been made.
   5. To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made).

Indicate the financial statement effect.

2. If you were supervising the bookkeeper, how would you suggest that the July 1 payment be recorded?

1-b. Prepare the journal entry for each of the following transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. To record the payment on July 1, assuming that all $2,550 is initially recorded as Rent Expense. b. To record the adjustment that would be appropriate at July 31 if your entry in a had been made. c. To record the payment on July 1, assuming instead that all $2,550 is initially recorded as Prepaid Rent. d. To record the adjustment that would be appropriate at July 31 if your entry in c had been made. e. To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made).

If you were supervising the bookkeeper, how would you suggest that the July 1 payment be recorded?

	The payment should be initially recorded with a debit to Prepaid Rent.radio button unchecked1 of 4 The payment should be initially recorded with a credit to Prepaid Rent.radio button unchecked2 of 4 The payment should be initially recorded with a debit to Rent.radio button unchecked3 of 4 The payment should be initially recorded with a credit to Rent.

Required 1A Required 1B Required 2 1-a. Prepare the Horizontal model for each of the following transactions. a. To record the payment on July 1, assuming that all $2,550 is initially recorded as Rent Expense. b. To record the adjustment that would be appropriate at July 31 if your entry in a had been made. c. To record the payment on July 1, assuming instead that all $2,550 is initially recorded as Prepaid Rent. d. To record the adjustment that would be appropriate at July 31 if your entry in c had been made. e. To record the adjustment that would be appropriate at August 31 and September 30, regardless of how the payment on July 1 had been initially recorded (and assuming that the July 31 adjustment had been made). Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Show less Balance Sheet Income Statement Assets Liabilities Stockholders' Equity Net income Revenues Expenses a. b c. d. e.