On April 7, 2023, an auditor noticed that UGL Inc. accidentally recorded a rent expenditure of $41,000 as an expense instead of as prepaid. The purchase was made on the last day of the 2022 fiscal period. Write the journal entry that should be recorded in the 2023 fiscal period to correct the Prepaid Rent account. Assume that the insurance covers the period of May 1, 2023 to April 30, 2024 and the tax rate is 30%.

Answer rating: 100% (QA)

To correct the Prepaid Rent account for the error made by UGL Inc the following journal entry should ... View the full answer