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On Sept 1, the Mini-Mite Store paid $12,000 to the Maxi-Mall Co. for 3 months rent starting Sept 1. Prepaid Rent was debited for the $12,000. If financial statements are prepared on Sept 30, the appropriate adjusting journal entry to make on Sept 30 would be

Respuesta :

Tundexi

Answer:

$4,000 debit to Rent Expense

$4,000 credit to Prepaid Rent.

Explanation:

Date        Account Title and Explanation  Debit        Credit

Sept 30   Rent Expenses                             $4,000

                ($12,000 * 1/3)

                       Prepaid Rent                                           $4,000

                (Been an adjusting entry to record the rent expenses)

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