This is hard and \"bank\" is not an option for one entry like I was told when I
ID: 2608164 • Letter: T
Question
This is hard and "bank" is not an option for one entry like I was told when I asked this question last night. Please use accoutning entry names. Thank you.
REVISED: Right there are no transactions, but there has to be 2 terms that can be used to show how paying for 2 months of rent can be documented in a journal.
Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $24,000 ($2,000/month) in advance on October 1 25. 100 ponts value: Required information You did not receive full credit for this question in a previous attempt 1.& 2. Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for rent used till December 31 Note: Enter debits before credits. Date General Journal Deblt Credit December 31 Record entry Clear entry View general journalExplanation / Answer
Answer
There is a Bank or Cash account involved in Entry 1 as Rent is paid in money and Cash or Bank account must be credited.
Date
Dr. $
Cr. $
October 1
Prepaid Rent ($2,000 * 12 Months)
24,000
Cash / Bank
24,000
(Being insurance paid in advance)
December 31
Rent Expense ($2,000 * 3)
6,000
Prepaid Rent
6,000
(Being Rent expense for 3 months i.e. from October to December adjusted)
Date
Dr. $
Cr. $
October 1
Prepaid Rent ($2,000 * 12 Months)
24,000
Cash / Bank
24,000
(Being insurance paid in advance)
December 31
Rent Expense ($2,000 * 3)
6,000
Prepaid Rent
6,000
(Being Rent expense for 3 months i.e. from October to December adjusted)
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