On August 31, 2021, Prince Corp. made the annual lease payment of $63,000 for its office building. The payment covers the period of September 1, 2021 to August 31, 2022. Prince Corp. has a year-end of March 31. Assuming the entire amount had originally been debited to Prepaid Lease, the required adjustment at year-end is: Question 9 options: DR Lease Expense 21,000 CR Prepaid Lease 21,000 DR Prepaid Lease 36,750 CR Lease Expense 36,750 DR Lease Expense 36,750 CR Prepaid Lease 36,750 DR Prepaid Lease 21,000 CR Lease Expense 21,000
On August 31, 2021, Prince Corp. made the annual lease payment of $63,000 for its office building. The payment covers the period of September 1, 2021 to August 31, 2022. Prince Corp. has a year-end of March 31. Assuming the entire amount had originally been debited to Prepaid Lease, the required adjustment at year-end is: Question 9 options: DR Lease Expense 21,000 CR Prepaid Lease 21,000 DR Prepaid Lease 36,750 CR Lease Expense 36,750 DR Lease Expense 36,750 CR Prepaid Lease 36,750 DR Prepaid Lease 21,000 CR Lease Expense 21,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On August 31, 2021, Prince Corp. made the annual lease payment of $63,000 for its office building. The payment covers the period of September 1, 2021 to August 31, 2022. Prince Corp. has a year-end of March 31. Assuming the entire amount had originally been debited to Prepaid Lease, the required adjustment at year-end is:
Question 9 options:
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DR Lease Expense 21,000 CR Prepaid Lease 21,000 |
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DR Prepaid Lease 36,750 CR Lease Expense 36,750 |
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|
DR Lease Expense 36,750 CR Prepaid Lease 36,750 |
|
|
DR Prepaid Lease 21,000 CR Lease Expense 21,000 |
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