Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Experience the ease of finding reliable answers to your questions from a vast community of knowledgeable experts. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

The balance in the prepaid rent account before adjustment at the end of the year is $12,444, which represents 12 months' rent paid on December 1. The adjusting entry required on December 31 is

Sagot :

The adjusting entry would be Debit rent expenses and credit prepaid rent by $1,037.

Adjusting journal entries are being used to report transactions that occurred but were not correctly documented using the accrual method of accounting.

There at end of an accounting period, the adjusting journal entries are filed in a company's general ledger to comply with the matching and revenue recognition standards.

The most common types of journal entry changes are accruals, deferrals, and estimates. It is used for accrual accounting reasons when one accounting period finishes and another begins..

That instance, rent expenditure for December must be acknowledged; the entry would be as follows.

DR Rent Expense =12444/12

                               = $1,037

CR prepaid rent $1,037

To know more about adjusting entries click here:

https://brainly.com/question/13933471

#SPJ4

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.