PROBLEM Parranda Corporation paid cash of $18,000 on June 1, 2020 for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2020 adjusting entry is: a. debit Prepaid Rent and credit Rent Expense, $7,500 b. debit Prepaid Rent and credit Rent Expense, $10,500 c. debit Rent Expense and credit Prepaid Rent, $10,500 d. debir Prepaid Expense and credit Cash, $7,500

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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PROBLEM

Parranda Corporation paid cash of $18,000 on June 1, 2020 for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2020 adjusting entry is:

a. debit Prepaid Rent and credit Rent Expense, $7,500

b. debit Prepaid Rent and credit Rent Expense, $10,500

c. debit Rent Expense and credit Prepaid Rent, $10,500

d. debir Prepaid Expense and credit Cash, $7,500

 

 

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