Diego Corp paid its annual corporate insurance on July 1, 2020 for the upcoming 12 month period of $48,000. Diego Corp recorded the initial payment of $48,000 in July, but did NOT record anything since. What would the transaction be on Dec. 31, 2020? Increase to Rent Expense; Decrease to Prepaid Rent Decrease to Rent Expense; Increase to Prepaid Rent Increase to assets; decrease to expenses No change in rent
Diego Corp paid its annual corporate insurance on July 1, 2020 for the upcoming 12 month period of $48,000. Diego Corp recorded the initial payment of $48,000 in July, but did NOT record anything since. What would the transaction be on Dec. 31, 2020? Increase to Rent Expense; Decrease to Prepaid Rent Decrease to Rent Expense; Increase to Prepaid Rent Increase to assets; decrease to expenses No change in rent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Diego Corp paid its annual corporate insurance on July 1, 2020 for the upcoming 12 month period of $48,000. Diego Corp recorded the initial payment of $48,000 in July, but did NOT record anything since. What would the transaction be on Dec. 31, 2020?
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Increase to Rent Expense; Decrease to Prepaid Rent |
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Decrease to Rent Expense; Increase to Prepaid Rent |
||
|
Increase to assets; decrease to expenses |
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No change in rent |
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