The business previously prepaid 12 months rent on the business space for $2400. They have now used 1 month's worth of that prepayment and need to recognise this in their accounting records. Select the flows and accounts that the business would use to record this transaction.

The adjusting entry to record the amount of prepaid rent used during the period requires a (debit/credit) to rent expense and a (debit/credit) to prepaid rent.

One of the business's suppliers provides inventory to them on credit and they purchased $2000 worth and will pay it in 6 weeks. Select the flows and accounts that the business would use to record this transaction.

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000 and represents three month’s rent paid on 1 December. The adjusting entry required on 31 December is:Group of answer choicesDebit Prepaid rent, $4,000; Credit Rent expense $4,000.Debit Prepaid rent, $8,000; Credit Rent expense, $8,000.Debit Rent expense, $12,000; Credit Prepaid rent, $12,000.Debit Rent expense, $4,000; Credit Prepaid rent, $4,000.

The business has a loan of $50,000 and makes interest-only repayments of 1% interest per month. It is the end of the month and they are making their $500 interest payment. Select the flows and accounts that the business would use to record this transaction.

An adjustment for Prepaid Rent Expense would indicate: athe amount of the trial balance bthe amount expired cthe amount originally paid dthe amount of the ending balance