E3-33B. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct thefinancial statements) Fairmount Co. prepaid three years’ rent ($31,500) on January 1, 2018. AtDecember 31, 2018, Fairmount prepared a trial balance and then made the necessary adjustingentry at the end of the year. Fairmount adjusts its accounts once each year—on December 31.What amount appears for Prepaid Rent ona. Fairmount’s unadjusted trial balance at December 31, 2018?b. Fairmount’s adjusted trial balance at December 31, 2018?What amount appears for Rent Expense onc. Fairmount’s unadjusted trial balance at December 31, 2018?d. Fairmount’s adjusted trial balance at December 31, 2018?
E3-33B. (Learning Objectives 3, 4: Adjust the accounts for prepaid expenses; construct the
financial statements) Fairmount Co. prepaid three years’ rent ($31,500) on January 1, 2018. At
December 31, 2018, Fairmount prepared a
entry at the end of the year. Fairmount adjusts its accounts once each year—on December 31.
What amount appears for Prepaid Rent on
a. Fairmount’s unadjusted trial balance at December 31, 2018?
b. Fairmount’s adjusted trial balance at December 31, 2018?
What amount appears for Rent Expense on
c. Fairmount’s unadjusted trial balance at December 31, 2018?
d. Fairmount’s adjusted trial balance at December 31, 2018?
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