Due to the terms of its lease, Hawke Services, Inc., pays the rent for its new office
Question:
Due to the terms of its lease, Hawke Services, Inc., pays the rent for its new office space in one annual payment of $26,800 on August 1, 2021. The lease covers the period of August 1, 2021, through July 31, 2022. Hawke Services has a year-end of December 31. Assume that Hawke Services had no other prepaid rent transactions, nor did it have a Prepaid Rent beginning balance in 2021. Give the journal entries that Hawke Services would make for
(a) The annual rent payment of $26,800 on August 1
(b) The adjusting entry for rent expense on December 31, 2021. What is the balance of Prepaid Rent at December 31, 2021?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: