Utopia Dance Clubs, Inc., rented an old warehouse for its newest club on October 1, 2010. To

Question:

Utopia Dance Clubs, Inc., rented an old warehouse for its newest club on October 1, 2010. To receive a discount, Utopia paid $11,700 for 18 months of rent in advance. How will this advance payment appear on the financial statements prepared at year end, December 31? Assume no additional rent is paid in 2011 and 2012. Use the following chart for youranswers:

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...