On May 1, Yeung Enterprises paid rent for 3 months in advance. The total payment was $1,200. How much rent expense should Yeung recognize for the month of May?
A) $1,200
B) $ 300
C) $ 600
D) $ 400

Question

Quizplus · Accepted Answer

The total rent payment of $1,200 covers 3 months, so the monthly rent expense is $1,200 / 3 = $400. Therefore, Yeung should recognize $400 as rent expense for May.

On May 1, Yeung Enterprises Paid Rent for 3 Months