Question

Compute the Balance in the Prepaid Rent Account as of December 31, 2019. Given; Our Business...

Compute the Balance in the Prepaid Rent Account as of December 31, 2019. Given; Our Business Paid $12,000 on Sept-1-2019 for the next 6 months of Rent. Assume the rent is spread evenly over the months involved. Show your answer as a number only, no commas, decimals, or dollar signs.

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Answer #1

Answer: $4,000

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Rent per month                      [$12,000 / 6 months] $2,000
Balance in the Prepaid Rent Account as of September 1, 2019 $12,000
Less: Rent used up for the month of September [Calculated above] $2,000
Balance in the Prepaid Rent Account as of September 30, 2019 $10,000
Less: Rent used up for the month of October [Calculated above] $2,000
Balance in the Prepaid Rent Account as of October 31, 2019 $8,000
Less: Rent used up for the month of November [Calculated above] $2,000
Balance in the Prepaid Rent Account as of November 30, 2019 $6,000
Less: Rent used up for the month of December [Calculated above] $2,000
Balance in the Prepaid Rent Account as of December 31, 2019 $4,000
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