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On August 1, 2022, a firm prepaid $53,520 for 2 years' rent of an office building. On March 1, 2023, the firm prepaid $34,800 for 2 years' rent of a warehouse. The rent agreements on both buildings went into effect on the dates the rents were prepaid. What amount will be shown for prepaid rent on the December 31, 2023 balance sheet? $35.910 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/240 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $88,320 Reason: (($53,520/24 months) x 7 months remaining)+($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $52,410 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $44,160

On August 1, 2022, a firm prepaid $53,520 for 2 years' rent of an office building. On March 1, 2023, the firm prepaid $34,800 for 2 years' rent of a warehouse. The rent agreements on both buildings went into effect on the dates the rents were prepaid. What amount will be shown for prepaid rent on the December 31, 2023 balance sheet? $35.910 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/240 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $88,320 Reason: (($53,520/24 months) x 7 months remaining)+($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $52,410 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $44,160

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On August 1, 2022, a firm prepaid $53,520 for 2 years' rent of an office building. On March 1, 2023, the firm prepaid $34,800 for 2 years' rent of a warehouse. The rent agreements on both buildings went into effect on the dates the rents were prepaid. What amount will be shown for prepaid rent on the December 31, 2023 balance sheet? $35,910 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/240 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $88,320 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $52,410 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $44,160 Next Question Read
Transcribed Image Text:On August 1, 2022, a firm prepaid $53,520 for 2 years' rent of an office building. On March 1, 2023, the firm prepaid $34,800 for 2 years' rent of a warehouse. The rent agreements on both buildings went into effect on the dates the rents were prepaid. What amount will be shown for prepaid rent on the December 31, 2023 balance sheet? $35,910 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/240 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $88,320 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $52,410 Reason: (($53,520/24 months) x 7 months remaining)+(($34,800/24 months) x 14 months remaining). Note that the question is asking for the Prepaid rent on the balance sheet on December 31, 2023 and not the expense on the income statement. $44,160 Next Question Read
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