Barker Corp. began operations on November 30, 2015, and immediately paid $48,000 for 6 months rent in advance for rental of a parking lot for the period beginning December 1, 2015. Barker's accounting period ends on December 31, 2015. Indicate how much will be reported for each of the following accounts on Barker's financial statements for the period ending December 31, 2015. If the amount reported is zero, indicate so by writing $0, and explain why zero is the appropriate amount.
A Rent Expense
B Rent Payable
C Rent revenue
D Prepaid Rent

Question

Quizplus · Accepted Answer

The Answer of Barker Corp. began operations on November 30, 2015, and immediately paid $48,000 for 6 months rent in advance for rental of a parking lot for the period beginning December 1, 2015. Barker's accounting period ends on December 31, 2015. Indicate how much will be reported for each of the following accounts on Barker's financial statements for the period ending December 31, 2015. If the amount reported is zero, indicate so by writing $0, and explain why zero is the appropriate amount.
A Rent Expense
B Rent Payable
C Rent revenue
D Prepaid Rent