On April 1, 2018, Maine Corporation paid $9,200 cash in advance for a one-year l

Question

On April 1, 2018, Maine Corporation paid $9,200 cash in advance for a one-year lease on an office building. Assume that Maine records the prepaid rent as an asset and that the books are closed on December 31 Required a. Show the payment for the one-year lease and the related adjusting entry to recognize rent expense in the accounting equation. (Do 14.28 points not round intermediate calculations. Enter any decreases to account balances with a minus sign.) eBook MAINE CORPORATION Accounting Equations for the Year 2018 Print Assets Stockholders' Equity Event Common Retained Stock Earnings CashPrepaid Rent Paid rent in advance Adjusting rent expense Totals References (6,975)

Explanation / Answer

Maine Corporation Accounting Equation for the year 2018 Event Cash + Prepaid Rent = Common Stock + Retained Earnings Paid Rent in Advance -9,200 9,200 Adjusting Rent Expense - 6,900 - 6,900 Totals -9,200 2,300 - 6,900

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