Calco Incorporated rents its store location. Rent is $$9,000$ per month, payable quarterly in advance. On July $1,$ a check for $$27,000$ was Required $1$A

Required $1$B

$1-$a$.$ Prepare the Horizontal model for each of the following transactions.

a$.$ To record the payment on July $1,$ assuming that all $$27,000$ 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 $$27,000$ 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.

adjustment had been made$).$

Indicate the financial statement effect.

Note: Enter decreases with a minus sign to indicate a negative financial statement effect.

issued to the landlord for the July$-$September quarter.

Required:

Prepare the Horizontal model and Journal entry for each of the following transactions.

a$.$ To record the payment on July $1,$ assuming that all $$27,000$ 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 $$27,000$ 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.

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

Complete this question by entering your answers in the tabs below.

Required $1$ A

Required $1B$

$1-$a$.$ Prepare the Horizontal model for each of the following transactions.

a$.$ To record the payment on July $1,$ assuming that all $$27,000$ 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 $$27,000$ is initially recorded as Prepaid Rent.

d$.$ To record the adjustment that would be appropriate at July $31$ if your entry in chad 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

adjustment had been made$).$

Indicate the financial statement effect.