On January 1,Latinovich Company paid $16,000 for rent.The rent covers the period January 1 through April 30.Latinovich Company recorded Prepaid Rent of $16,000.What is the balance in the Prepaid Rent account on April 1?

Question

Quizplus · Accepted Answer

By April 1, three months of rent (January, February, March) have been used, totaling $12,000 ($4,000 per month). Therefore, the remaining balance for April is $4,000.

On January 1,Latinovich Company Paid $16,000 for Rent