due to the terms of its lease, hawke services, inc., pays the rent for its new office space in one annual…

due to the terms of its lease, hawke services, inc., pays the rent for its new office space in one annual payment of $26,800 on august 1, 2024, through july 31, 2025. hawke services has a year - end of december 31. assume that hawke services has no rent transactions, nor did it have a prepaid rent beginning balance in 2024. give the journal entries that hawke services would make for (a) the annual rent payment of $26,800 on august 1 and (b) the adjusting entry for rent expense on december 31, 2024. what is the balance of prepaid rent at december 31, 2024? give the journal entries that hawke services would make for (a) the annual rent payment of $26,800 on august 1 and (b) the adjusting entry for rent expense on december 31, 2024. what is the balance of prepaid rent at december 31, 2024? (record debits first, then credits. exclude explanations.) give the journal entry that hawke services would make for (a) the annual rent payment of $26,800 on august 1. date accounts debit credit august 1 prepaid rent 26,800 cash 26,800 give the journal entry that hawke services would make for (b) the adjusting entry for rent expense on december 31, 2024. (do not show intermediary calculations, and round your final answer to the nearest whole dollar.) date accounts debit credit december 31 rent expense 11,167 prepaid rent 11,167 what is the balance of prepaid rent at december 31, 2024? (round your final answer to the nearest whole dollar.) prepaid rent at december 31 =

due to the terms of its lease, hawke services, inc., pays the rent for its new office space in one annual payment of $26,800 on august 1, 2024, through july 31, 2025. hawke services has a year - end of december 31. assume that hawke services has no rent transactions, nor did it have a prepaid rent beginning balance in 2024. give the journal entries that hawke services would make for (a) the annual rent payment of $26,800 on august 1 and (b) the adjusting entry for rent expense on december 31, 2024. what is the balance of prepaid rent at december 31, 2024? give the journal entries that hawke services would make for (a) the annual rent payment of $26,800 on august 1 and (b) the adjusting entry for rent expense on december 31, 2024. what is the balance of prepaid rent at december 31, 2024? (record debits first, then credits. exclude explanations.) give the journal entry that hawke services would make for (a) the annual rent payment of $26,800 on august 1. date accounts debit credit august 1 prepaid rent 26,800 cash 26,800 give the journal entry that hawke services would make for (b) the adjusting entry for rent expense on december 31, 2024. (do not show intermediary calculations, and round your final answer to the nearest whole dollar.) date accounts debit credit december 31 rent expense 11,167 prepaid rent 11,167 what is the balance of prepaid rent at december 31, 2024? (round your final answer to the nearest whole dollar.) prepaid rent at december 31 =

Answer

Explanation:

Step1: Determine the prepaid rent amount initially

The company paid $26,800 as prepaid rent on August 1, 2024.

Step2: Calculate the monthly rent expense

The rent period is from August 1, 2024 - July 31, 2025 (12 months). So the monthly rent is $\frac{26800}{12}\approx2233.33$.

Step3: Calculate the number of months of rent expense recognized in 2024

From August 1 - December 31, 2024, there are 5 months.

Step4: Calculate the rent expense for 2024

The rent expense for 2024 is $2233.33\times5 = 11166.65\approx11167$.

Step5: Calculate the balance of prepaid rent

The balance of prepaid rent = Initial prepaid rent - Rent expense recognized. So it is $26800 - 11167=15633$.

Answer:

15633