The Charlestown Corporation's February 28 unadjusted trial balance included many accounts, including the following. Cash $17,000...

The Charlestown Corporation's February 28 unadjusted trial balance included many accounts, including the following.

Cash	$17,000
Supplies	$14,000
Prepaid Rent	$9,600
Prepaid Insurance	$5,700
Accounts Payable	$21,000
Fees Revenue	$88,000
Supplies Expense	$0
Rent Expense	$0
Insurance Expense	$1,600

During February, the company had paid $9,600 to use office space for four months, beginning on February 1.

Determine the dollar amount of prepaid rent the Corporation would report on its February 28 balance sheet.

	a.	$9,600
	b.	$7,200
	c.	$4,800
	d.	$2,400

Solutions

Expert Solution

Rent paid for 4 month beginning from feburary = 9600

Prepaid Rent = Rent Paid - Feburary Rent

Feb Rent = 9600/4 = 2400

Prpaid Rent = 9600 - 2400 = $7200

Option B is correct

ekkarill92 answered 2 years ago

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