Use this information to answer the following question. The trial balance for Sanchez Company appears as follows:
If as of December 31, 2010, the rent of $100 for December had not been recorded or paid, the adjusting entry would include a

Question

Use this information to answer the following question. The trial balance for Sanchez Company appears as follows:
 If as of December 31, 2010, the rent of $100 for December had not been recorded or paid, the adjusting entry would include a

Quizplus · Accepted Answer

Since the rent of $100 for December had not been recorded or paid, it should be recorded as an expense in the current period. Therefore, the adjusting entry would include a debit to Rent Expense for $100. Option B is incorrect because Rent Payable is a liability account that would be used if rent had been paid in advance but not yet incurred as an expense. Option C is incorrect because there is no cash transaction involved in this scenario. Option D is incorrect because there is no account called Accumulated Rent in accounting.

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