On April 1, Year 1, Maine Corporation paid $8,900 cash in advance for a one-year

Question

On April 1, Year 1, Maine Corporation paid $8,900 cash in advance for a one-year lease on an office building. Assume that Maine records the prepaid rent as an asset and that the books are closed on December 31 Required a. Show the payment for the one-year lease and the related adjusting entry to recognize rent expense in the accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.) MAINE CORPORATION Accounting Equations for Year1 Assets Stockholders' Equity Retained +Earnings Event Common+ Cash Prepaid Rent Stock Paid rent in advance Adjusting rent expense Totals

Explanation / Answer

Journal entry for payment of rent

Journal entry for adjusting rent expense

Prepaid rent $ 8,900 Cash $ 8,900

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.