Gracie Company made a prepaid rent payment of $2,800 on January 1. The company's monthly rent is $700. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is

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Gracie Company paid $2,800 for rent on January 1, covering 4 months ($700 per month). By January 31, one month's rent ($700) has been used, leaving $2,100 ($2,800 - $700) as the prepaid rent on the balance sheet.

Gracie Company Made a Prepaid Rent Payment of $2,800 on January