Question
Happy Company signed a two-year lease on July 1, 2019, and paid the $34,800 total rent in advance. Happy recorded the transaction as a debit
Happy Company signed a two-year lease on July 1, 2019, and paid the $34,800 total rent in advance. Happy recorded the transaction as a debit to Prepaid Rent and a credit to Cash.
What adjusting entry should Happy make on December 31, 2019 (no previous adjustment has been made)?
Select one:
A.
| Rent Expense | 8,700 |
| Prepaid Rent | 8,700 |
B.
| Prepaid Rent | 26,100 |
| Rent Expense | 26,100 |
C.
| Rent Expense | 17,400 |
| Prepaid Rent | 17,400 |
D.
| Prepaid Rent | 8,700 |
| Rent Expense | 8,700 |
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
