On December 31 of the current year, Prepaid Rent was debited $5,400 for three months of rent, paid in advance. The amount of the adjusting entry on December 31 is:

Name: On December 31 of the current year, Prepaid Rent was debited $5,400 for three months of rent, paid in advance. The amount of the adjusting entry on December 31 is:
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Question

Quizplus · Accepted Answer

Since the rent was prepaid for three months starting on December 31, no rent expense has been incurred by that date, so no adjusting entry is needed.

On December 31 of the Current Year, Prepaid Rent Was