On 1 July the Winter Shoe Store paid $6,000 to their landlord for 6 month’s rent in advance beginning 1 July. Prepaid Rent was increased by the full amount. If financial statements are prepared on 31 July, the adjusting entry to be made by the Winter Shoe Store is:

Question

Accepted Answer

Debit (increase) Rent expense by $1,000 and credit (decrease) Prepaid rent by $1,000

Answer

Debit (increase) Rent expense by $6,000 and credit (decrease) Prepaid rent by $1,000

Answer

Debit (increase) Prepaid rent by $1,000 and credit (decrease) Rent expense by $1,000

Answer

Debit (increase) Rent expense by $6,000 and credit (decrease) Prepaid rent by $6,000

Crowdly

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

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