The Charlestown Corporation\'s February 28 unadjusted trial balance included man
ID: 2431152 • Letter: T
Question
The Charlestown Corporation's February 28 unadjusted trial balance included many accounts, including the following.
$17,000
$14,000
$9,600
$5,700
$21,000
$88,000
$0
$0
$1,600
During February, the company had paid $9,600 to use office space for four months, beginning on February 1.
Determine the dollar amount of prepaid rent the Corporation would report on its February 28 balance sheet.
$9,600
$7,200
$4,800
$2,400
Cash$17,000
Supplies$14,000
Prepaid Rent$9,600
Prepaid Insurance$5,700
Accounts Payable$21,000
Fees Revenue$88,000
Supplies Expense$0
Rent Expense$0
Insurance Expense$1,600
Explanation / Answer
Rent paid for 4 month beginning from feburary = 9600
Prepaid Rent = Rent Paid - Feburary Rent
Feb Rent = 9600/4 = 2400
Prpaid Rent = 9600 - 2400 = $7200
Option B is correct