Prepaid Rent was $400 at the end of May and $650 at the end of June.Rent Expense for June was $260.How much cash was paid for rent during June?

Question

Quizplus · Accepted Answer

To find the cash paid for rent during June, we need to subtract the increase in prepaid rent from the Rent Expense for June.

Increase in prepaid rent = $650 - $400 = $250
Rent expense for June = $260

Cash paid for rent during June = Rent expense - Increase in prepaid rent
Cash paid for rent during June = $260 - $250 = $10

Therefore, the cash paid for rent during June was $510 (Option C).

Prepaid Rent Was $400 at the End of May and $650