Question

On November 1, 2019, Wenger Co. paid its landlord $4,140 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2020, at which time the contract may be renewed. Prepare the horizontal model to record the six-month advance rent payment on November 1, 2016.

Answer 1

Answer:

Assets

Cash: -$4,140

Prepaid Rent: $4,140

Explanation:

given data

paid  landlord = $4,140

time = 6 month

to find out

horizontal model to record the six-month advance rent payment on November 1, 2016

solution

we get here  6 month advance rent payment on November 1, 2016 that is as

date                          title                                   Debit     Credit

November 1,2016      Prepaid Rent                 4140  

                                  Cash                                                  4140