SLL is leasing space in both Barrie and the Collingwood as of January 1, 2020. Mike signed two year leases at each location and SLL was required to place a deposit of $2,500 (for each location) which will cover their last month's rent at both of those locations. When asked, Mike informed you that he paid this amount December 15th and expensed the $5,000, recording it under operating expenses.

Question - There might be instances where the transaction was not correctly recorded in the books. You need to determine the appropriate adjusting entries.

Answer rating: 100% (QA)

Based on the information provided it appears that the 5000 deposit paid by Mike on December 15th was ... View the full answer