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    Exam 3: Adjustments: Accruals and Deferrals
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    A Company Pays $36,000 for Twelve Months' Rent on October
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A Company Pays $36,000 for Twelve Months' Rent on October

Question 143

Question 143

True/False

A company pays $36,000 for twelve months' rent on October 1, recording the prepayment as an asset. The adjusting entry on December 31 is a debit to Rent Expense, $9,000, and a credit to Prepaid Rent, $9,000.

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