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On October 1, 2022, Grey Matter Inc. (a calendar year end corporation) pays $24,000 in advance for rent on a warehouse that covers the period
On October 1, 2022, Grey Matter Inc. (a calendar year end corporation) pays $24,000 in advance for rent on a warehouse that covers the period October 1, 2022 through September 30, 2023. When this transaction is recorded on October 1, 2022, Grey Matter Inc. will: decrease Cash $24,000 and increase Rent Expense $24,000 decrease Cash $24,000 and increase Prepaid Rent $24,000 decrease Cash $24,000 and increase Unearned Revenue $24,000 decrease Prepaid Rent $6,000 and increase Rent Expense $6,000
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