Suppose on January 1 Austin's Tavern prepaid rent of $21,600 for the full year.At August 31, how much rent expense should be recorded for the period January 1 through August 31?At August 31, Austin's Tavern should record rent expense of

Total rent paid = $21,600 Time period from 1st Jan to 31st August is = 8 months Because there are 12…

Answered: Suppose on January 1 Austin's Tavern…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 11Q: If the Prepaid Insurance account had a balance of $12,000, representing one years policy premium,...

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The Eldorado Corporation's controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021: Debit Credit Interest expense 5,400 Interest payable Rent expense Prepaid rent Interest receivable Interest revenue 5,400 17,500 17,500 450 450 Additional information: 1. The company borrowed $180,000 on March 31, 2021. Principal and interest are due on March 31, 2022. This note is the company's only interest-bearing debt. 2. Rent for the year on the company's office space is $42,000. The rent is paid in advance. 3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 3.0% due in one year. Required: 1. What is the interest rate on the company's note payable? 2. The 2021 rent payment was made at the beginning of which month? (Do not round your intermediate calculation.) 3. How much did Eldorado lend its customer on October 31?
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Suppose on January 1 Austin's Tavern prepaid rent of $21,600 for the full year. At August 31, how much rent expense should be recorded for the period January 1 through August 31? At August 31, Austin's Tavern should record rent expense of