Lemming Company showed $283,500 in prepaid rent on December 31, 20X1. On December 31, 20X2, the balance

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Lemming Company showed $283,500 in prepaid rent on December 31, 20X1. On December 31, 20X2, the balance in the prepaid rent account was $343,200. Rent expense for 20X2 was $708,750.

Required:

1. What amount of cash was paid for rent in 20X2?

2. What adjustment in prepaid expenses is needed if the indirect method is used to prepare Jarem’s statement of cash flows?

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Managerial Accounting The Cornerstone Of Business Decision Making

ISBN: 9780357715345

8th Edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

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Question Posted: Jul 26, 2022 04:36 AM

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Lemming Company showed $283,500 in prepaid rent on December 31, 20X1. On December 31, 20X2, the balance

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1 Cash Paid for Rent Rent Expense Ending Balance Beginning Balance 708750 343200 2835...View the full answer

Managerial Accounting The Cornerstone Of Business Decision Making

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