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Mandarinka [93]
3 years ago
8

As Prepaid Rent is used, the asset becomes a/an

Business
2 answers:
Tju [1.3M]3 years ago
8 0
The correct answer is the letter B. Expense
melamori03 [73]3 years ago
6 0
As prepaid rent is used, the asset becomes a liability.
Liability because it becomes the responsibility of someone who uses the prepaid. Since the prepaid rent was used, it needs money to be able to pay them. It becomes the responsibility for someone to be able to use his money to pay the prepaid rent that was used.
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Date            Description                                         Debit                    Credit

March, 31     Payroll Tax expense                       $‭2,320.5‬0

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                    SUTA taxes                                                                      $ 918

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FICA Social Security taxes = 1,700 * 10 * 6.2% = $‭1,054‬

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Payroll Tax expense = 1,054 + 246.50 + 102 + 918 = $‭2,320.5‬0

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