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solniwko [45]
3 years ago
14

On July 1 the FISHER Shoe Store paid 15,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the

full amount. The financial statement prepared on July 31 should adjust:
Business
1 answer:
spin [16.1K]3 years ago
7 0

Answer and Explanation:

The adjusting entry is as followS:

Rent expense $2,500

      To Prepaid rent $2,500

(Being rent expense is recorded)

Here the rent expense is debited as it increased the expenses and credited the prepaid rent as it decreased the assets

The rent for one month is

= $15,000 ÷ 6 months × 1 month

= $2,500

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