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There are three pages to this. I have first page done and stuck on last two! Thank you! 4-9. Prepayments 1. Ajax Corporation leased a
There are three pages to this. I have first page done and stuck on last two! Thank you!
4-9. Prepayments 1. Ajax Corporation leased a building for one year on April 1 for $18,000. The company paid for the entire year on April 1. Ajax's bookkeeper made the following entry on April Cr. Rent expense Prepaid rent Dr. 1,500 16,500 Cash 18,000 Assume it is now December 31. Ajax has not made any adjusting entries before December 31. Required: a. Calculate the adjusted ending balance in the Prepaid Rent account and the Rent Expense account at December 31. ending balance - 19000(ar 150o) = 18000-13300 - 4500 Rent expence account 9x1500=(13, soos b. Prepare t-accounts showing the April 1 transaction, the adjustment to be made at December 31, and the ending balances in Prepaid Rent and Rent Expense. Prepaid Rent Rent Expense Credit 4/4/1 16,500 12000 12/31/4/1 1500 1331 12,000 13. soort 4500 c. Prepare the general journal adjusting entry for December 31. rent expense 12,000 Prepaid rent 12,000 18x1600) 2. Assume the same facts as in (1) above, except the bookkeeper made the following entry on April 1: Cr. Dr. 18,000 Rent expense Cash 18,000 The bookkeeper did not make any adjusting entries related to this amount before December 31. Required: a. Calculate the adjusted ending balance in the Prepaid Rent account and the Rent Expense account at December 31. b. Prepare t-accounts showing the April 1 transaction, the adjustment to be made at December 31, and the ending balances in Prepaid Rent and Rent Expense. Prepaid Rent Rent Expense c. Prepare the general journal adjusting entry for December 31, 3. Assume the same facts as in (1) above, except the bookkeeper made the following entry on April 1: Cr. Dr. 18,000 Prepaid rent Cash 18,000 The bookkeeper did not make any adjusting entries related to this amount before December 31. Required: a. Calculate the adjusted ending balance in the Prepaid Rent account and the Rent Expense account at December 31. b. Prepare t-accounts showing the April 1 transaction, the adjustment to be made at December 31, and the ending balances in Prepaid Rent and Rent Expense. Prepaid Rent Rent Expense c. Prepare the general journal adjusting entry for December 31 Step by Step Solution
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