Requirement 1 Prepare the General Journal entry to record the $12,000 payment made when the rental contract was signed on June 20, 2021. Requirement 2 Fill-in the amounts on the Prepaid Rent timeline. The boxes above the timeline show the amount of Prepaid Rent still remaining at various dates during the four month period. The boxes below the timeline show the amount of Prepaid Rent that expires (is used-up) during each of the four months. Hint: The amount that expires will be the same each month. Requirement 3 Prepare a "T" account analysis to determine the required July 31 adjustment to the Prepaid Rent account. on the amount of Aut onth period Prepare the July 31 General Journal adjusting entry for Prepaid Rent. Requirement 4 and Requirement 5 Assuming that all monthly General Journal adjusting entries were correctly made: boxes ebove D What would be the amount of Prepaid Rent shown on Amy's Floral Shop, Inc.'s Balance Sheet as of August 31, 2021? he four months D What would be the amount of Rent Expense on the Income Statement for the period August 1 to August 31, 2021?
Requirement 1 Prepare the General Journal entry to record the $12,000 payment made when the rental contract was signed on June 20, 2021. Requirement 2 Fill-in the amounts on the Prepaid Rent timeline. The boxes above the timeline show the amount of Prepaid Rent still remaining at various dates during the four month period. The boxes below the timeline show the amount of Prepaid Rent that expires (is used-up) during each of the four months. Hint: The amount that expires will be the same each month. Requirement 3 Prepare a "T" account analysis to determine the required July 31 adjustment to the Prepaid Rent account. on the amount of Aut onth period Prepare the July 31 General Journal adjusting entry for Prepaid Rent. Requirement 4 and Requirement 5 Assuming that all monthly General Journal adjusting entries were correctly made: boxes ebove D What would be the amount of Prepaid Rent shown on Amy's Floral Shop, Inc.'s Balance Sheet as of August 31, 2021? he four months D What would be the amount of Rent Expense on the Income Statement for the period August 1 to August 31, 2021?
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 51P
Related questions
Question
Transcribed Image Text:On June 20, 2021, Amy Smith, owner of Amy's Floral Shop, Inc., signed a contract to rent a retail
store. As part of the contract, Amy paid four months of rent in advance. The rental rate is $3,000
per month, thus she paid $12,000 cash in advance when she signed the contract on June 20. Amy
will move into the retail store on July 1, 2021, which is the start of her rental period.
The company has the accounting policy that all prepaid assets are initially recorded in asset
accounts.
The following is a partial list of the accounts in Amy's General Ledger. These are the only
accounts you need for this problem.
D Cash
D Prepaid Rent (asset account)
D Rent Expense
roblem 11 to
in the
Requirement 1
Prepare the General Journal entry to record the $12,000 payment made when the rental
contract was signed on June 20, 2021.
Requirement 2
Fill-in the amounts on the Prepaid Rent timeline. The boxes above the timeline show the
amount of Prepaid Rent still remaining at various dates during the four month period. The
boxes below the timeline show the amount of Prepaid Rent that expires (is used-up) during
each of the four months. Hint: The amount that expires will be the same each month.
Transcribed Image Text:Requirement 1
Prepare the General Journal entry to record the $12,000 payment made when the rental
contract was signed on June 20, 2021.
Requirement 2
Fill-in the amounts on the Prepaid Rent timeline. The boxes above the timeline show the
amount of Prepaid Rent still remaining at various dates during the four month period. The
boxes below the timeline show the amount of Prepaid Rent that expires (is used-up) during
each of the four months. Hint: The amount that expires will be the same each month.
Requirement 3
Prepare a "T" account analysis to determine the required July 31 adjustment to the Prepaid
Rent account.
the
cateo
to and
Truck
on the Auto
the amount of Auto and
month perio
Requirement 4
Prepare the July 31 General Journal adjusting entry for Prepaid Rent.
the timetins ch
Requirement 5
Assuming that all monthly General Journal adjusting entries were correctly made: boxes sbove
D What would be the amount of Prepaid Rent shown on Amy's Floral Shop, Inc.'s Balance
unt of
Sheet as of August 31, 2021?
a four months
D What would be the amount of Rent Expense on the Income Statement for the period
August 1 to August 31, 2021?
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