Assume that on September 1, 2016, a 6-month rent payment for $12,000 per month (for a total of $72,000) was made with respect to a commercial lease that the company entered into on that date as a tenant. The company took occupancy of the rented space immediately. The lease term will expire on February 28, 2017. The $72,000 payment was recorded as a debit to Prepaid Rent on September 1, 2016. The adjusting entry on December 31, 2016, is as follows:

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The Answer of Assume that on September 1, 2016, a 6-month rent payment for $12,000 per month (for a total of $72,000) was made with respect to a commercial lease that the company entered into on that date as a tenant. The company took occupancy of the rented space immediately. The lease term will expire on February 28, 2017. The $72,000 payment was recorded as a debit to Prepaid Rent on September 1, 2016. The adjusting entry on December 31, 2016, is as follows:

Assume That on September 1, 2016, a 6-Month Rent Payment