The following information applies to the questions displayed below On November 1

Question

The following information applies to the questions displayed below On November 1, 2013, Wenger Co. pald Its landlord $4,500 in cash as an advance rent payment on its store location. The six-month lease perlod ends on April 30, 2014, at which time the contract may be renewed. . Award: 1 out of 1.00 point Required a.1 Prepare the horizontal model to record the six-month advance rent payment on November 1, 2013. + for increase and for decrease). Balance Sheet Income Statement Stockholders Assets Liabilities Net Income Revenues Expenses Cash -4500 Prepaid rent +4500

Explanation / Answer

Answer:b.2

Debit Rent Expense 750
Credit Prepaid Rent 750
(4500 / 6 =750)

Answer:c. Amount paid 4500
Minus two months rent used up (1500)
Equals balance at December 31, 2013 3000

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