On January 1,2012,a company paid $3,000 for rent.The rent covers the period January 1,2012 through June 30,2012.On June 30,2012,the fiscal year end,the company prepares an adjusting entry.What is the effect of this adjusting entry on stockholders' equity?

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The adjusting entry at June 30,2012 would involve recognizing rent expense for the period from January 1 to June 30, which means that expenses increase. Since expenses decrease stockholders' equity, the adjusting entry would result in decrease in stockholders' equity.

On January 1,2012,a Company Paid $3,000 for Rent