Adjusting Journal Entries; T- accounts. Using the information provided in BE4- 11, prepare the t- accounts for Rent Expense and Prepaid Rent for Barnard and Associates as of December 31 after adjusting journal entries.
In BE4- 11
Barnard and Associates, a law firm, paid $ 18,000 for 12 months’ rent in advance on October 1 of the current year. The Company’s fiscal year- end is December 31. Prepare the journal entries for the rent payment on October 1 and the necessary adjusting journal entry on December 31.