Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $18,600 ($1,550/month) in advance on October 1. 3. Calculate the year-end adjusted balances of prepaid rent and rent expense (assuming the balance of Prepaid Rent at the beginning of the year is $0).

Debit Rent expense    $4,650

Credit Prepaid account   $4,650

Explanation:

The rental income received in advance affects only assets side of the accounting equation. As cash was paid for another asset; prepaid insurance.

When the cash was paid in advance on October 1,

Debit Prepaid account $18,600

Credit Cash account $18,600

At year end (after 3 months), the rent expense would be

= $1,550 × 3 = $4,650

Year end entries required would be

Debit Rent expense    $4,650

Credit Prepaid account   $4,650

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

arrowright

anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

arrowright

nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

arrowright