On January 1,2010,a company paid $3,000 for rent.The payment covers the period January 1,2010 through June 30,2010.On January 1,2010,what is the effect of this transaction on stockholders' equity?

Question

Quizplus · Accepted Answer

The payment for rent on January 1, 2010, only affects the asset and liability accounts (Prepaid Rent and Rent Payable). It does not impact stockholders' equity directly. Therefore, there is no effect on stockholders' equity.

On January 1,2010,a Company Paid $3,000 for Rent