requirement 1. (a) what amount appears for prepaid rent on dizzys unadjusted trial balance at december 31…
requirement 1. (a) what amount appears for prepaid rent on dizzys unadjusted trial balance at december 31, 2024? (b) what amount appears for prepaid rent on dizzys adjusted trial balance at december 31, 2024? (enter a 0 for any zero balances.) prepaid rent balance a. unadjusted trial balance at december 31, 2024 $ 36,000 b. adjusted trial balance at december 31, 2024 $ 24,000 requirement 2. (a) what amount appears for rent expense on dizzys unadjusted trial balance at december 31, 2024? (b) what amount appears for rent expense on dizzys adjusted trial balance at december 31, 2024? (enter a 0 for any zero balances.) rent expense balance a. unadjusted trial balance at december 31, 2024 b. adjusted trial balance at december 31, 2024 requirements 1. what amount appears for prepaid rent on a. dizzys unadjusted trial balance at december 31, 2024? b. dizzys adjusted trial balance at december 31, 2024? 2. what amount appears for rent expense on a. dizzys unadjusted trial balance at december 31, 2024? b. dizzys adjusted trial balance at december 31, 2024?
Answer
Explanation:
Step1: Understand unadjusted trial - balance concept
Pre - paid rent is an asset initially recorded when rent is paid in advance. In the unadjusted trial - balance, it shows the amount of rent paid in advance that has not been expensed yet. Given that the unadjusted balance of Prepaid Rent is $36,000, for Rent Expense in the unadjusted trial - balance, since no rent has been expensed yet (as it's all prepaid), the amount is $0.
Step2: Analyze adjusted trial - balance
The adjusted trial - balance takes into account the portion of prepaid rent that has been used up as an expense. The decrease in prepaid rent from $36,000 to $24,000 means that $36000 - 24000=12000$ has been recognized as Rent Expense. So, the Rent Expense in the adjusted trial - balance is $12,000$.
Answer:
a. $0 b. $12,000