L.B.C. Corporation has an October 31st fiscal year end. On October 31st, 2016, its prepaid rent account shows a balance of $7,200. Beginning July 1st, 2017 L.B.C. pays $4,800 a month for the rent of its store. The terms of the lease require that rent be paid six months in advance on January 1 and July 1 of each year. Before July 1st, 2017 L.B.C. paid $3,600 a month in rent
Prepare all journal entries required in the year ending October 31, 2016 assuming that L.B.C. initially records its prepaid costs as expenses and uses reversing entries.

Answer rating: 100% (QA)

Solution Date Account Titles and Explanation Debit Credit January 1 2017 Rent Expenses 2... View the full answer