Wentlent Services Company Records Deferred Expenses as Expenses When Payment

question 71

Essay

Wentlent Services Company records deferred expenses as expenses when payment is made in advance and deferred revenues as revenues when the payment is received in advance.At the end of the year,Wentlent Services Company makes the necessary adjustments based on accrual basis accounting.On July 1,it paid rent for an office in the amount of $24,000 for the period July 1 through June 30 of the following year.Provide the year-end adjusting entry for rent prepayment.

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Definitions:

Thirst

The physical sensation of needing to drink fluids, reflecting the body's requirement for hydration.

Hunger

A physical sensation or condition of feeling the need to eat, often resulting from the body's need for nutritional intake.

Equitably

In a manner that is fair and impartial.

Equally

With uniformity, without difference; being the same in quantity, size, degree, or value.