Help Save&ExitSub Chapter 3 Review Assignment Check my 2 ufe, Inc. experienced t

Question

Help Save&ExitSub Chapter 3 Review Assignment Check my 2 ufe, Inc. experienced the following events in Year 1, ts ferst year of operation 1 Performed counseing services for $33.200 cash. 2. On February 1, Year 1, paid $23,400 cash to rent office space for the coming year 3 Adjusted the accounts to reflect the amount of rent used during the year 2.5 Required Based on this information alone a. Record the events in general ledger accounts under an accounting equation. (Do not round int ferencesdecreases to account balances with a minus sign.) Effect of Events on the Accounting Equation Stockholders -Equity Cash Prepaid RentRetained Prepaid rent

Explanation / Answer

a.

Used rent = $23400 x 11/12 = $21450

b.

c. Rent expense to be recognized in Year 2: $1950

Per Chegg guidelines, the first question has been answered. Kindly post independent questions separately. Thank you.

LIFE, INC. Effect of Events on the Accounting Equation Event Assets = Stockholders' Equity Cash Prepaid Rent = Retained Earnings 1 Performed services 33200 = 33200 2 Prepaid rent -23400 23400 = 3 Used rent -21450 = -21450 Totals 9800 1950 = 11750

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