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Clipper Company Paid $36,000 for May, June, July, and August

Question 5

Multiple Choice

Clipper Company paid $36,000 for May, June, July, and August rent in advance. The company recorded this transaction by increasing the balance in the Prepaid Rent account. The balance in the Prepaid Rent account as of August 1 is:


A) $9,000
B) $- 0-
C) $27,000
D) $18,000

Correct Answer:

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