Alpha paid $12,000 cash in advance for rent and recorded it as a debit to Rent Expense and a credit to Cash. Only 25% of the rent was used during the year. Alpha recorded the following "normal" AJE: Debit Rent Expense for $3,000 and credit Prepaid Rent for $3,000. What is the effect on assets, liabilities, and net income?

Answer rating: 100% (QA)

Heres the breakdown of the effect on assets liabilities and net income Initial Entry Incorrect This ... View the full answer