On September 1, Northhampton Industries signed a six-month lease for office space, which is effective September 1. Northhampton agreed to prepay the rent and mailed a check for $12,000 to the landlord on September 1. Assume that Northhampton prepares adjustments only four times a year: on March 31, June 30, September 30, and December 31.

Prepaid Rent-Quarterly Adjustments On September 1, Northhampton Industries signed a six-month lease for office space, which is effective September 1. Northhampton agreed to prepay the rent and mailed a check for $12,000 to the landlord on September 1. Assume that Northhampton prepares adjustments only four times a year: on March 31, June 30, September 30, and December 31. 1. Compute the rental cost for each full month. per month 2. Identify and analyze the effect of the transaction the payment of rent on September 1 Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Select your answei Select your a Select your answer- nswer Assets Liabilities + Stockholders' Equity = Net Income Select your answei Select your answe Select your answei Select your answe Select your answei Select your answei' Select your answe Select your answe 3. Identify and analyze the effect of the adjustment on September 30 Activity Accounts Statement(s) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Select your answei Select your answer- Select your answer- Assets + Stockholders' Equity Ex = Net Income Select your answeiv Select your answeiv Select your answeiv Select your answeiv 4. Assume that the accountant prepares the adjustment on September 30 but forgets to record an adjustment on December 31. Will net income for the year be understated or overstated? Select your answei ! By what amount