Duncan Services initially records prepaid expenses as expenses, and unearned revenues as revenues. Then at the end of the year, they make the necessary adjustments to the accrual basis. On July 1, Duncan paid rent for office space in the amount of $12,000 for the period July 1 through June 30 of the following year. Please provide the adjusting entry that would be needed at year-end.

Question

Duncan Services initially records prepaid expenses as expenses, and unearned revenues as revenues. Then at the end of the year, they make the necessary adjustments to the accrual basis. On July 1, Duncan paid rent for office space in the amount of $12,000 for the period July 1 through June 30 of the following year. Please provide the adjusting entry that would be needed at year-end.
Duncan Services initially records prepaid expenses as expenses, and unearned revenues as revenues. Then at the end of the year, they make the necessary adjustments to the accrual basis. On July 1, Duncan paid rent for office space in the amount of $12,000 for the period July 1 through June 30 of the following year. Please provide the adjusting entry that would be needed at year-end.

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The Answer of Duncan Services initially records prepaid expenses as expenses, and unearned revenues as revenues. Then at the end of the year, they make the necessary adjustments to the accrual basis. On July 1, Duncan paid rent for office space in the amount of $12,000 for the period July 1 through June 30 of the following year. Please provide the adjusting entry that would be needed at year-end.

Duncan Services Initially Records Prepaid Expenses as Expenses, and Unearned