Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

12th Edition

ISBN: 9780134833132

Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

Publisher: PEARSON

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Textbook Question

Chapter 3, Problem 3.33BE

LO 3, 4

(Learning Objectives 3. 4: Adjust the accounts for prepaid expenses: construct the financial statements) Fairmount Co. prepaid three years' rent ($31,500) on January1, 2018. At December 31, 2018. Fairmount prepared a trial balance and then made the necessary adjusting entry a; the end of the year. Fairmount adjusts Its accounts once each year—on December 31.

What amount appears for Prepaid Rent on

a. Fairmount ‘s unadjusted trial balance a: December 31,2018?

b. Fairmount’s adjusted trial balance at December 31, 2018?

What amount appears for Rent Expanse on

c. Fairmount’s unadjusted trial balance at December 31, 2018?

d. Fairmount s adjusted trial balance at December 31, 2018?

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Chapter 3, Problem 3.32BE

Chapter 3, Problem 3.34BE

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Chapter 3 Solutions

Financial Accounting Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)

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Solution Summary: The author explains that prepaid rent and rent expense would appear on the unadjusted trail balance and the adjusted trial balance at 31 st December 2018.

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