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On Dec 1, our taco stand company pays $600 for a 6 month rental of our taco truck, recording the $600 as an asset.
On Dec 1, our taco stand company pays $600 for a 6 month rental of our taco truck, recording the $600 as an asset. Our fiscal year-end is Dec 31. 1. What is the journal entry when purchasing the deal? 2. What is the adjusting entry, if any, on Dec 31? 3. What would the adjusting entry be, if any, if the original entry had been recorded as an expense?
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1 The journal entry when purchasing the rental deal on Dec 1 would be Debit Prepaid Rent asset 600 ...
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
