On November 1, 2019, Wenger Co. paid its landlord $4,140 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2020, at which time the contract may be renewed. Prepare the horizontal model to record the six-month advance rent payment on November 1, 2016.

Question

Ramon Petty

Business

21 January, 17:48

On November 1, 2019, Wenger Co. paid its landlord $4,140 in cash as an advance rent payment on its store location. The six-month lease period ends on April 30, 2020, at which time the contract may be renewed. Prepare the horizontal model to record the six-month advance rent payment on November 1, 2016.

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Answers (1)

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Ryann · Answer 1

Assets

Cash: - $4,140

Prepaid Rent: $4,140

Explanation:

given data

paid landlord = $4,140

time = 6 month

to find out

horizontal model to record the six-month advance rent payment on November 1, 2016

solution

we get here 6 month advance rent payment on November 1, 2016 that is as

date title Debit Credit

November 1,2016 Prepaid Rent 4140

Cash 4140