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Suppose that our business uses a monthly fiscal period. On March 1, 2020, we paid 6 months of rent, a value of $9,000 to our landlord, in advance, for the coming months. If we were to create an Adjusting Entry to record the consumption of prepaid rent on June 31, 2020, what would that look like? 1.Debit - Rent Expense $9000 </> Credit - Prepaid Rent $9000   2.Debit - Rent Expense $6000 </> Credit - Prepaid Rent $6000   3.Debit - Rent Expense $4500 </> Credit - Cash $4500   4.Debit - Rent Expense $7500 </> Credit - Cash $7500

Suppose that our business uses a monthly fiscal period. On March 1, 2020, we paid 6 months of rent, a value of $9,000 to our landlord, in advance, for the coming months. If we were to create an Adjusting Entry to record the consumption of prepaid rent on June 31, 2020, what would that look like? 1.Debit - Rent Expense $9000 </> Credit - Prepaid Rent $9000   2.Debit - Rent Expense $6000 </> Credit - Prepaid Rent $6000   3.Debit - Rent Expense $4500 </> Credit - Cash $4500   4.Debit - Rent Expense $7500 </> Credit - Cash $7500

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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6) Suppose that our business uses a monthly fiscal period. On March 1, 2020, we paid 6 months of rent, a value of $9,000 to our landlord, in advance, for the coming months. If we were to create an Adjusting Entry to record the consumption of prepaid rent on June 31, 2020, what would that look like?

1.Debit - Rent Expense $9000 </> Credit - Prepaid Rent $9000
 
2.Debit - Rent Expense $6000 </> Credit - Prepaid Rent $6000
 
3.Debit - Rent Expense $4500 </> Credit - Cash $4500
 
4.Debit - Rent Expense $7500 </> Credit - Cash $7500
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