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03-08-2017
Business

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The balance in the prepaid rent account before adjustment at the end of the year is $21,000, which represents three months’ rent paid on december 1. the adjusting entry required on december 31 is to

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Aliwohaish12 Aliwohaish12

03-08-2017

Rent for December is
21000/3months= 7000

The adjusting entry is
Debt to rent expenses 7000
Credit to prepaid rent 7000

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