On July 1, Year 1, a company paid $48,000 for 24 months of advance rent on its

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On July 1, Year 1, a company paid $48,000 for 24 months of advance rent on its warehouse. Assuming the company has a December year end, what would be the amount of rent expense in Year 1 under Cash basis versus accrual accounting?

Cash basis = $24,000; Accrual = $24,000.

Cash basis = $48,000; Accrual = $12,000.

Cash basis = $12,000: Accrual = $36,000.

Cash basis = $48,000; Accrual = $24,000.

Related Book For answer-question

Accounting

ISBN: 978-1337899451

27th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Posted Date: Feb 06, 2019 10:30 AM

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On July 1, Year 1, a company paid $48,000 for 24 months of advance rent on its

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