On June 1, 2022, Gamma Corporation paid $240,000 cash for one year's rent in advance and recorded
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Question:
On June 1, 2022, Gamma Corporation paid $240,000 cash for one year's rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2020 adjusting journal entry is:
Debit Rent Expense and Credit Prepaid Rent $100,000
Debit Prepaid Rent and Credit Rent Expense $140,000
Debit Prepaid Rent and Credit Cash $100,000
Debit Rent Expense and Credit Prepaid Rent $140,000
Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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