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    Determining Prepaid Rent Remaining

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    Oddessy Consulting pays $90,000 for three years of rent in advance on September 1, 2008. Oddessy prepares yearly financial statements on December 31, 2008.
    Referring to Case 3.2, how much Prepaid Rent remains after the 12-31-09 adjusting entry?

    $70,000
    $60,000
    $10,000
    $50,000.

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    https://brainmass.com/business/accounting/determining-prepaid-rent-remaining-558826

    Solution Preview

    The company paid $90,000 for three years of rent in advance on 09-01-2008. Therefore,

    $30,000 for 09-01-2008 to 09-01-2009
    $30,000 for 09-01-2009 to ...

    Solution Summary

    This solution provides the correct calculation, answer, and explanation to the prepaid rent adjusting entry question presented.

    $2.19

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