28 On July 1 2018 Charlie Co paid 18000 in advance to RentAn

28. On July 1, 2018, Charlie Co. paid $18,000 in advance to Rent-An-Office for 12 months rent from July 2018 through June 2019. amount of rent expense incurred in 2018 What adjusting entry should Charlie Co. record on December 31, 2018 to record the Rent Expense 18,00 Cash 18,000 Rent Expense 18,000 Prepaid Rent 18,000 Prepaid Rent 9,00 Rent Expense Rent Expense Prepaid Rent 9,000 9,00 9,00

Solution

For the year 2018, rent is paid from July to December, which is six month.

Therefore, rent expense for the year 2018 = 18,000×6/12 = $9,000

Prepaid rent for the year 2019 = 18,000-9,000 = $9,000

Answer:-

C.	Prepaid Rent	9,000
	Rent Expense		9,000