Gracie Inc made a prepaid rent payment of 4000 on January 1

Gracie, Inc. made a prepaid rent payment of $4,000 on January 1. The company\'s monthly rent is $1,000. The amount of prepaid rent that would appear on the January 31 balance sheet after adjustment is 6.

Solution

Answer is - 3000

That is 4000 - 1000

Prepaid rent is an asset that should be on the asset side in balance sheet

It is an expense that is paid in advance these can be set of against future Expense against that particular one

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