Calco Ins. rents its store location. Rent is $9,000 per month, payable quarterly in advance. On July 1, a check for $27,000 was issued to the landlord for the July- September quarter

Required:

1. 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.

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

Calco Inc. rents its store location. Rent is $9,000 per month, payable quarterly in advance. On July 1, a check for $27,000 was issued to the landlord for the July-September quarter. Required: 1. 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. 2. If you were supervising the bookkeeper, how would you suggest that the July 1 payment be recorded? 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 $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 init adjustment had been made). Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.) Balance Sheet Income Statement Revenues - Assets Liabilities Stockholders' Equity Net income = Ex Required 1A Required 1B Required 2 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 $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). Show less A View transaction list Journal entry worksheet 2 3 4 5 To record the payment on July 1, assuming that all $27,000 is initially recorded as Rent Expense. Note: Enter debits before credits. Journal entry worksheet 2 3 4 5 To record the payment on July 1, assuming that all $27,000 is initially recorded as Rent Expense. Note: Enter debits before credits. Transaction General Journal Debit Credit a. I Record entry Clear entry View general journal 2. 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 1A Required 1B Required 2 If you were supervising the bookkeeper, how would you suggest that the July 1 payment be recorded? IOThe payment should be initially recorded with a debit to Prepaid Rent. The payment should be initially recorded with a credit to Prepaid Rent. The payment should be initially recorded with a debit to Rent. IOThe payment should be initially recorded with a credit to Rent