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Iteru [2.4K]
4 years ago
14

On November 1, 2019, Peaches Consulting Service paid $4,800 for 12 months of advance rent on its office space. The correct adjus

ting entry on December 31, 2019, to show the amount of rent that had expired would include:
Business
1 answer:
igor_vitrenko [27]4 years ago
5 0

Answer:

Debit Rent expense $800

Credit Prepaid rent  $800

Explanation:

When rent is paid in advance, an asset is reduced while another is increased. The entries required are debit to prepaid rent and a credit to cash account. As the rent expires, the expense is recognized by debiting rent expense and crediting prepaid rents.

Rent expense as at 31 December 2019

= 2/12 * $4,800

= $800

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5 0
3 years ago
Generally, when business startup costs exceed the maximum amount allowed, the remaining costs may be amortized over_____ months.
irina1246 [14]

Answer:

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