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On June 1, 2019, KA Company paid $12,000 to lease office space for the next twelve months. KA Company debited a permanent account on June 1 when the cash was paid. KA Company adjusts its books on December 31 each year.
Question 1. The journal entry on June 1, 2019 would include a debit to which account?
a. Accounts Payable
b. Cash
c. Prepaid Rent
d. Retained Earnings
e. Rent Expense
Question 2. The adjusting journal entry on December 31, 2019 would include a debit to which account?
Question 3. The adjusting journal entry on December 31, 2019 would include a credit to which account?
Question 4. The amount of the adjusting journal entry on December 31, 2019 is:
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