on december 1 of the current year, prepaid rent was debited $10,800 for three months of rent, to cover the…

on december 1 of the current year, prepaid rent was debited $10,800 for three months of rent, to cover the period december 1 to february 28. the amount of the adjusting entry on december 31 is:\n\na. $0.\nb. $7,200.\nc. $3,600.\nd. $10,800.

on december 1 of the current year, prepaid rent was debited $10,800 for three months of rent, to cover the period december 1 to february 28. the amount of the adjusting entry on december 31 is:\n\na. $0.\nb. $7,200.\nc. $3,600.\nd. $10,800.

Answer

Explanation:

Step1: Calculate monthly rent

The total rent is $10,800 for 3 months. So the monthly rent is $10800\div3 = 3600$.

Step2: Determine rent for December

Since the adjusting entry is on December 31 (1 month has passed from December 1 - December 31), the amount of rent expense (and the adjusting entry amount) is for 1 month.

Answer:

C. $3,600