Duncan Services Initially Records Prepaid Expenses as Expenses,and Unearned Revenues $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

question 160

Essay

Duncan Services initially records prepaid expenses as expenses,and unearned revenues as revenues.Then at the end of the year,they make the necessary adjustments to the accrual basis.On July 1,Duncan paid rent for office space in the amount of $12,000 for the period July 1 through June 30 of the following year.Please provide the adjusting entry that would be needed at year-end.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Reactivity

The phenomenon where individuals alter their behavior or responses because they know they are being observed.

External Self-Reinforcement

A type of reinforcement paralleling that administered by a teacher. However, instead of the teacher delivering the reinforcer, the student performs this task.

Internal Reinforcement

The psychological process whereby an individual's intrinsic satisfaction from an activity encourages the continuation of that activity without external reward.

Performance Criteria

Specifies the expected levels of employee performance or outcomes, used to evaluate the effectiveness of tasks and duties.