E3-22A. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct thefinancial statements) Dizzy Toys prepaid three years’ rent ($36,000) on January 1, 2018. AtDecember 31, 2018, Dizzy prepared a trial balance and then made the necessary adjusting entryat the end of the year. Dizzy adjusts its accounts once each year—on December 31.What amount appears for Prepaid Rent ona. Dizzy’s unadjusted trial balance at December 31, 2018?b. Dizzy’s adjusted trial balance at December 31, 2018?What amount appears for Rent Expense onc. Dizzy’s unadjusted trial balance at December 31, 2018?d. Dizzy’s adjusted trial balance at December 31, 2018?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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E3-22A. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct the
financial statements) Dizzy Toys prepaid three years’ rent ($36,000) on January 1, 2018. At
December 31, 2018, Dizzy prepared a trial balance and then made the necessary adjusting entry
at the end of the year. Dizzy adjusts its accounts once each year—on December 31.
What amount appears for Prepaid Rent on
a. Dizzy’s unadjusted trial balance at December 31, 2018?
b. Dizzy’s adjusted trial balance at December 31, 2018?
What amount appears for Rent Expense on
c. Dizzy’s unadjusted trial balance at December 31, 2018?
d. Dizzy’s adjusted trial balance at December 31, 2018?

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