Patrick Trash Haulers paid $5,400 for an insurance policy on August 1, 2021 for the period from August 1, 2021 until July 30, 2022. If they make adjusting entries only at the end of their fiscal year (12/31) what adjusting entry will they need to make on 12/31/2021 for this insurance policy? Debit Rent Expense and credit Cash for $2.250. Debit Rent Expense and credit Prepaid Rent for $2,250.. Debit Prepaid Rent and credit Rent Expense for $2,250.. O Debit Rent Expense and Credit Cash for $3.150.

Patrick Trash Haulers paid $5,400 for an insurance policy on August 1, 2021 for the period from August 1, 2021 until July 30, 2022. If they make adjusting entries only at the end of their fiscal year (12/31) what adjusting entry will they need to make on 12/31/2021 for this insurance policy? Debit Rent Expense and credit Cash for $2.250. Debit Rent Expense and credit Prepaid Rent for $2,250.. Debit Prepaid Rent and credit Rent Expense for $2,250.. O Debit Rent Expense and Credit Cash for $3.150.

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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