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Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
Edition 4ISBN: 978-0324380767 Exercise 31
Adjustment for Prepaid Rent
Charles Company showed $63,000 in prepaid rent on December 31, 2011. On December 31, 2012, the balance in the prepaid rent account was $75,600. Rent expense for 2012 was $157,500.
Required:
1. What amount of cash was paid for rent in 2012
2. Conceptual Connection: What adjustment in prepaid expenses is needed if the indirect method is used to prepare Charles' statement of cash flows
Charles Company showed $63,000 in prepaid rent on December 31, 2011. On December 31, 2012, the balance in the prepaid rent account was $75,600. Rent expense for 2012 was $157,500.
Required:
1. What amount of cash was paid for rent in 2012
2. Conceptual Connection: What adjustment in prepaid expenses is needed if the indirect method is used to prepare Charles' statement of cash flows
Explanation
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1. Calculation of amount of cash was pai...
Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger
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