Champaign Company signed a one-year lease on April 1, 2019, and paid the $22,800 total year's rent in advance. Champaign recorded the transaction as a debit to Prepaid Rent and a credit to Cash.
What adjusting entry should Champaign make on December 31, 2019 (no previous adjustment has been made)?

Question

Quizplus · Accepted Answer

Transfer 9/12 x $22,800 = $17,100 from Prepaid Rent to Rent Expense

Champaign Company Signed a One-Year Lease on April 1, 2019