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California Mining began operations by issuing common stock for $92,500. The company paid $83,250 cash in advance for a one-year contract to lease machinery for the business. The lease agreement was signed on March 1, 2011, and was effective immediately. California Mining received $106,375 of cash revenue in 2011.
Record in general journal format the adjustment required as of December 31, 2011.
12/31: rent expenseprepaid rent
I don't know how to figure out the rent expense or the prepaid rent. The first question was prepaid rent and cash about March 1 so they were both $83,250. I don't know the answer to Dec. 31 though and I feel like I've put in every number possible to try to get the solution.
Ashton Fleming has decided to document and analyze the accounts payable process at S&S so the transition to a computerized system will be easier.
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