Jason Company paid $7,200 for one year's rent in advance beginning on October 1, Year 1. Jason's Year 1 income statement would report rent expense, and its statement of cash flows would report cash outflow for rent, respectively, of

Question

Quizplus · Accepted Answer

The rent expense for Year 1 would be $1,800 ($7,200/12 months). The cash outflow for rent would be $7,200, as the full amount was paid in advance. Therefore, the correct choice is C.

Jason Company Paid $7,200 for One Year's Rent in Advance