Use this information to answer the following question. The trial balance for Nowwick Company appears as follows:

-If as of December 31,20x5,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 Nowwick Company appears as follows:
 
-If as of December 31,20x5,the rent of $100 for December had not been recorded or paid,the adjusting entry would include a

Quizplus · Accepted Answer

Since the rent was incurred in December but not recorded or paid, it is an expense that needs to be recognized in the financial statements for the period ending December 31, 20x5. Therefore, the adjusting entry would need to increase Rent Expense (debit) by $100 to recognize the expense, and since it has not been paid yet, there is no need to record a credit to Cash or a liability account like Rent Payable or Accumulated Rent.

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