On June 1,2019,Starbucks paid the rent of $66,000 for 40 of its stores in Washington and California.The rent covers the period,June 1,2019 through November 30,2019.On June 1,Starbucks will record ________.On June 30,Starbucks will record ________.

Question

Quizplus · Accepted Answer

On June 1,the entire amount of $66,000 is recorded as prepaid rent.At the end of June,one of the six months that was prepaid ( $66,000 / 6 months = $11,000)is recorded as rent expense.

On June 1,2019,Starbucks Paid the Rent of $66,000 for 40