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What adjusting entry is necessary on 2010 december

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Reference no: EM13536352

Assume that rent of USD 12,000 was paid on 2010 September 1, to cover a one-year period from that date.

Prepaid Rent was debited. If financial statements are prepared only on December 31 of each year, what adjusting entry is necessary on 2010 December 31, to bring the accounts involved to their proper balances?

Reference no: EM13536352

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