Question

a company rented a premise for a year and paid of rent $24000on October 01,2018.

prepare the adjusting entry to be recorded on december 31,2018.
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Answer 1

Explanation:

Prepaid rent is rent paid prior to the rentalperiod to which it relates, so the tenant should record on its balance sheet the amount of rentpaid that has not yet been used. Rent is commonly paid in advance, being due on the first day of that month covered by the rentpayment.