contestada

If the prepaid rent account before adjustment at the end of the month has a debit balance of $2,800, representing a payment made on the first day of the month, and if the monthly rent was $700, the amount of prepaid rent that would appear on the balance sheet at the end of the month, after adjustment, is

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Answer:

$2,100

Explanation:

The amount that will appear in the balance sheet after the adjustment of the rent expense of the $700 during the month is given as follow:

Amount of prepaid rent on balance sheet at the end of month=Debit balance of prepaid rent-monthly rent expense for the month

Amount of prepaid rent on balance sheet at the end of month=$2,800-$700

                                                                                                       =$2,100