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On May 1, 2012, Perez Company paid $12,000 rent for a one year lease on equipment it uses in its operations. The adjusting entry at
On May 1, 2012, Perez Company paid $12,000 rent for a one year lease on equipment it uses in its operations. The adjusting entry at the end of the year:
A. decreases assets and stockholders' equity.
B. decreases assets and liabilities.
C. increases an expense and decreases a liability.
D. is not required.
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