In anticipation of carrying Mookie The Beagle Concierge branded Inventory, CK charged $432 for 6 months storage locker rental from Lynne's Space to Mookie The Beagle Concierge's VISA credit card on January 1, 2018. So at the end of the accounting period on January 31, Mookie The Beagle Concierge has used 1 month of rent at $72 ($432/6 months = $72 per month). The balance ($360) is a Prepaid Expense: Prepaid Rent, an asset account with future benefit. Since CK had not recorded anything related to the storage locker rental, an adjusting entry is needed to bring accounts up to date at January 31. What entries do u make?
In anticipation of carrying Mookie The Beagle Concierge branded Inventory, CK charged $432 for 6 months storage locker rental from Lynne's Space to Mookie The Beagle Concierge's VISA credit card on January 1, 2018. So at the end of the accounting period on January 31, Mookie The Beagle Concierge has used 1 month of rent at $72 ($432/6 months = $72 per month). The balance ($360) is a Prepaid Expense: Prepaid Rent, an asset account with future benefit. Since CK had not recorded anything related to the storage locker rental, an adjusting entry is needed to bring accounts up to date at January 31. What entries do u make?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In anticipation of carrying Mookie The Beagle Concierge branded Inventory, CK charged $432 for 6 months storage locker rental from Lynne's Space to Mookie The Beagle Concierge's VISA credit card on January 1, 2018. So at the end of the accounting period on January 31, Mookie The Beagle Concierge has used 1 month of rent at $72 ($432/6 months = $72 per month). The balance ($360) is a Prepaid Expense: Prepaid Rent, an asset account with future benefit. Since CK had not recorded anything related to the storage locker rental, an
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