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The company made rent payment of $3000 on April 1, the payment was for rent on the store building and was prepaid for one year.
The company made rent payment of $3000 on April 1, the payment was for rent on the store building and was prepaid for one year. The balance in the prepaid account at the end of 2018 represents the rent for january through march of 2019. Recognize the rental expense for january through march when you make the rent payment for next year. Prepaid rent on balance sheet of 2018 was $600. What are the general journal entries for this problem?
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