Provide Explanations for the Following Related Journal Entries:
A $\begin{array}{|l|r|r|}\hline \text { Prepaid Rent }& 4,000 \\\text { Cash }&& 4,000 \\\hline\end{array}$

question 174

Essay

Provide explanations for the following related journal entries:
a.
$\begin{array}{|l|r|r|}\hline \text { Prepaid Rent }& 4,000 \\\text { Cash }&& 4,000 \\\hline\end{array}$

b.
$\begin{array}{|l|r|r|}\hline\text { Trucks and Automobile } & 36,000 & \\\quad \text { Notes Payable } && 36,000\\\hline\end{array}$

c.
$\begin{array}{|l|r|r|}\hline \text { Cash } & 600 & \\\text { Accounts Receivable } & & 600 \\\hline\end{array}$

d.
$\begin{array}{|l|l|l|}\hline\text { Notes Payable } & 18,000 & \\\quad \text { Cash } & & 18,000\\\hline\end{array}$

e.
$\begin{array}{|l|r|r|}\hline\text { Cash } & 2,500 & \\\quad \text { Unearned Fees } & & 2,500\\\hline\end{array}$

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Definitions:

Useful Life Estimate

The period over which a fixed asset is expected to be usable by a company, affecting depreciation calculations.

Retroactive Changes

Adjustments made to past financial statements, policies, or calculations to correct errors or align with new accounting standards.

Future Years

Refers to the period of time that lies ahead, used in planning, forecasting, or projecting financial and operational activities.

Plant Asset

Long-lived tangible assets used in the production and distribution of goods and services, such as machinery and equipment.