If the Prepaid rent account before adjustment at the end of the month has a debit balance of $1500,representing a payment made on the first day of the month,and if the monthly rent was $1000,the amount of prepaid rent that would appear on the balance sheet at the end of the month,after adjustment,is:

Question

Quizplus · Accepted Answer

The correct amount of prepaid rent after adjustment is $500. This is because $1000 of the initial $1500 prepaid rent would be recognized as an expense for the current month, leaving $500 as the remaining prepaid amount for future periods.

If the Prepaid Rent Account Before Adjustment at the End