Question

On January 2, Dog Mart prepaid $19,920 rent for the year and recorded the prepayment in an asset account. Prepare the January 31 adjusting entry for rent expense. If an amount box does not require an entry, leave it blank. Jan. 31 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6

Answer 1

Debit : Rent Expense $1,660

Credit : Prepaid Rent $1,660

Step-by-step explanation:

The January 31 adjusting entry for rent expense would include a Debit to Rent Expense and Credit to Prepaid Rent - Asset Account at an amount of $1,660.

Calculation :

Rent Expense = 1/12 x $19,920 = $1,660