Fairmount Co. prepaid three years rent ($31,500) on January 1, 2021. At December 31, 2021, Fairmount prepared

Question:

Fairmount Co. prepaid three years’ rent ($31,500) on January 1, 2021. At December 31, 2021, Fairmount prepared a trial balance and then made the necessary adjusting entry at the end of the year. Fairmount adjusts its accounts once each year—on December 31. 

What amount appears for Prepaid Rent on 

a. Fairmount’s unadjusted trial balance at December 31, 2021?

b. Fairmount’s adjusted trial balance at December 31, 2021? 

What amount appears for Rent Expense on

a. Fairmount’s unadjusted trial balance at December 31, 2021?

b. Fairmount’s adjusted trial balance at December 31, 2021?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

Question Posted: