The company utilizes a storage facility on the other side of town. The landlord, as part of an inducement to the company, has agreed to delay the December cash payment for use until January 15^th of next year. The company signed a monthly rental agreement of $2,000 per month on December 1^st 

 

1. Will these transactions require an adjusting entry? Why?

2. Is it an accrual or deferral and give your justification?

3. What are the accounts that will be debited and credited for this entry?

Answer rating: 100% (QA)

1 Adjusting Entry Requirement Yes these transactions will require an adjusting entry The reason is t... View the full answer