Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
If as of December 31,2013,the rent of $200 for December had not been recorded or paid,the adjusting entry would include a

Question

Use this information to answer the following question. The trial balance for Barnstable Corporation appears as follows:
 If as of December 31,2013,the rent of $200 for December had not been recorded or paid,the adjusting entry would include a

Quizplus · Accepted Answer

If the rent expense for December has not been recorded or paid, it means that the expense has not yet been recognized in the accounts. To adjust the accounts, a debit entry should be made to Rent Expense for $200, which will increase the expense and reduce the net income for the period. This adjustment entry will also have a corresponding credit entry to Rent Payable or Accrued Rent for $200, which will increase the liability and reflect the amount owed to the landlord for the rent expense incurred but not yet paid. However, since Rent Payable is not an option, the best answer is A. Credit to Cash for $200 is not correct as there is no payment made, and credit to Accumulated Rent is not a valid account.

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