On September 1, 2019, Two Sisters Company Pays $36,000 Cash

question 154

Multiple Choice

On September 1, 2019, Two Sisters Company pays $36,000 cash for six months rent. The balance in prepaid rent on December 31, 2019, after adjustment, would be:

• A)$6,000.
• B)$24,000.
• C)$12,000.
• D)$0.

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Definitions:

Drumlins

streamlined, elongated hills formed by glacial action, made of till and shaped like inverted spoons.

Sediment

Particles of rock, minerals, or biological materials that have been transported and deposited by wind, water, or ice, often forming layers in bodies of water.

Glacier

A large mass of ice, formed from compacted layers of snow, that moves slowly over land.

Erosion

The process by which the surface of the Earth is worn away by the action of water, wind, or ice.