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    Prepaid Rent: Preparing the Adjusting Entry

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    Adjusting Entries: Prepaid rent at 1/1/10 was $9,000. During 2010 rent payments of $110,000 were made and charged to "rent expense." The 2010 income statement shows as a general expense the item "rent expense" in the amount of $111,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr for debit and Cr for credit.

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    Solution Summary

    The solution assists in preparing the adjusting entry for the prepaid rent.

    $2.19

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