QUESTION 1

Pete's Pets is a new pet store in Parklands. It rents its only store location from a property developer for R15 000 per month and pays one month's rent in advance on the last day of each month (i.e. it pays January's rent on 31 December). The business has a year-end of 31 December, and it has rented the location since 1 April 2019. The bookkeeper debits all rental payments to the Rent Expense account.

You are required to:

1. Prepare the adjusting journal entry(ies) required to correctly report the information above on 31 December 2019. Dates and narrations are required

2. Fill in the empty spaces in the following financial records and reports (if a cell should remain empty, please insert a dash ("-") to indicate that it is empty):

Pre-Adjustment Trial Balance of Pete's Pets on 31 December 2019 DR CR Rent Expense Prepaid Rent Expense Post-Adjustment Trial Balance of Pete's Pets (also called Pre-Closing Trial Balance) on 31 December 2019 DR CR Rent Expense Prepaid Rent Expense Post-Closing Trial Balance of Pete's Pets on 31 December 2019 DR CR Rent Expense Prepaid Rent Expense Statement of Financial Position of Pete's Pets as at 31 December 2019 Current assets: 2019 Prepaid Rent Expense Statement of Comprehensive Income of Pet's Pets as at 31 December 2019 2019 Rent Expense