Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 1 july the winter shoe store paid $6,000 to ace

On 1 July the Winter Shoe Store paid $6,000 to Ace Realty for 6 month’s rent...

50.1K

Verified Solution

Question

Accounting

On 1 July the Winter Shoe Store paid $6,000 to Ace Realty for 6month’s rent beginning 1 July. Prepaid Rent was debited for thefull amount. If financial statements are prepared on 31 July, theadjusting entry to be made by the Winter Shoe Store is:

Select one:

a. Debit Rent expense, $6,000; Credit Prepaid rent, $6,000

b. Debit Prepaid rent, $1,000; Credit Rent expense, $1,000

c. Debit Rent expense, $1,000; Credit Prepaid rent, $1,000

d. Debit Rent expense, $6,000; Credit Prepaid rent, $6,000

e. None of the above

Answer & Explanation Solved by verified expert
4.0 Ratings (641 Votes)
Answer Option c Debit Rent expense 1000 Credit Prepaid rent 1000 Rent is paid for 6 months on 1st july financial statements are prepared on 31 July Thus Rent expense will be considered only for the month    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Wyatt invested $1,600 in an account paying an interest rate of 5% compounded annually. Joshua...

Calculus
Q

Tyler Inc.'s most recent annual dividend was $3.65 a share. The firm has been growing at...

Finance
Q

Explain in details, what are they with Examples and advantages ? Static CMOS Dynamic Circuits Pass Transistor Curcuirs Domino...

Electrical Engineering
Q

A 480 V, 50 Hz, Y-connected six-pole synchronous generator has a per-phase synchronous reactance of 1.0 Ω....

Electrical Engineering
Q

1 The mass of a calorimeter is 10 gm The specific heat of the material...

Physics
Q

The volume of a prism is given by the formula V = lwh, where I...

Basic Math
Q

01 03 LC Consider the function f x x 12 Which of the following would...

Basic Math
Q

On January 1,2024 , Splash City issues $300,000 of 7% bonds, due in 10 years,...

Accounting
Q

how did you find the Total DM Purchase Cost $ and how did you find...

Accounting
Q

ABD showed a 30 balance in its ADA on 12/31/2016. write- offs during 2016 were...

Accounting
Q

Does the concept of relevant range apply to fixed costs? Explain your answer. IN YOUR...

Accounting
Q

A. You are analyzing the price/book value ratios for seven firms in the hospitality industry,...

Finance