Question

Suppose on January 1 Adam​'s Tavern prepaid rent of $ 20 comma 400 for the full year. At March 31​, how much rent expense should be recorded for the period January 1 through March 31​?

Answer 1

$5,100

Step-by-step explanation:

Assuming a constant monthly rent rate throughout the year, the amount that should be recorded as rent expense, per month, is:

`M = (\$20,400)/(12)\\M=\$1.700`

From January 1st through March 31​st there are three full months. Therefore, the amount that should be recorded is:

`A = 3*\$1,700\\A = \$5,100`