Ask Question
24 April, 04:09

On December 1, Mountain and Meadow Tree Service prepaid $6,600 for six months' rent. Give the adjusting entry to record rent expense at December 31. Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at December 31. Mountain and Meadow adjusts the accounts only at December 31, the end of its fiscal year.

+5
Answers (1)
  1. 24 April, 04:48
    0
    Mountain and Meadow Tree services prepaid rent $6,600 on December 1 for 6 months rent.

    Note for asset and expense accounts when they increase you debit and when they reduce you credit.

    The first entry

    On December 1 : Debit Prepaid Rent account for $6,600

    Narration: Prepaid rent for 6 months

    Balance: $6,600

    Since the rent is for 6 months, monthly payment will be = 6,600/6 = $1,100

    On December 31 post the following adjusting entries

    December 31 : Debit Rent Expense $1,100

    Narration: Rent for December

    Balance: $1,100

    December 31 : Credit Prepaid Rent $1,100

    Narration: Rent for December

    Balance: $5,500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On December 1, Mountain and Meadow Tree Service prepaid $6,600 for six months' rent. Give the adjusting entry to record rent expense at ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers