Duncan Services Inc.records prepaid expenses as expenses when incurred,and unearned revenues as revenues when the payment is received in advance.At the end of the year,Duncan Services Inc.makes the necessary adjustments based on accrual basis accounting.On July 1,it paid rent for an office in the amount of $24,000 for the period July 1 through June 30 of the following year.Provide the year-end adjusting entry for rent prepayment.

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The Answer of Duncan Services Inc.records prepaid expenses as expenses when incurred,and unearned revenues as revenues when the payment is received in advance.At the end of the year,Duncan Services Inc.makes the necessary adjustments based on accrual basis accounting.On July 1,it paid rent for an office in the amount of $24,000 for the period July 1 through June 30 of the following year.Provide the year-end adjusting entry for rent prepayment.