Madison Hardware, a franchise of Ace Hardware Corporation , pays quarterly rent of $15,000 to Baldwin Commercial Real Estate at the beginning of each quarter for its location in Baldwin Mall.
Using the balance-sheet-equation format, analyze the effects of the following on the tenant’s and the landlord’s financial position:
1. Madison Hardware pays $15,000 rent on July 1.
2. Adjustment for July.
3. Adjustment for August.
4. Adjustment for September.