Three Months Of Rent Were Prepaid On September 1 For $10,800, But Two Months Have Now Expired, Leaving Only One Month Prepaid At October 31. What Is The Amount Of Rent Expense That Will Be Recorded In The Related Adjusting Entry Dated October 31?
The correct answer of this multiple choice question (mcq) is C, as Rent Expense (RE) for two months is $7200 i.e., $3,600 + $3,600 = $7,200. Explanation: Rent (R) for 1 Month = Total Amount of R / 3 = $10,800 / 3 = $3,600 Here, we need to find out RE for 2 months from 1 st September to 31 st October, so RE for 2 months = $3,600 X 2 = $7,20