Answered: Suppose that our business uses a…

Name: 5) Suppose that our business uses a monthly fiscal period. On March 1,
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Description: 5) 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. What would the journal entry in the general journal for the purchase of Prepa

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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5) 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. What would the journal entry in the general journal for the purchase of Prepaid rent look like?

1.Debit - Rent Expense $9000 </> Credit - Prepaid Rent $9000

2.Debit - Rent Expense $9000 </> Credit - Cash $9000

3.Debit - Prepaid Rent $9000 </> Credit - Building $9000

4.Debit - Prepaid Rent $9000 </> Credit - Cash $9000

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