Wentfield Services, Inc

Essay

Wentfield Services, Inc. records deferred expenses as expenses when payment is made in advance and deferred revenues as revenues when the payment is received in advance. At the end of the year, Wentfield Services, Inc. makes the necessary adjustments based on accrual basis accounting. On July 1, it paid rent for an office in the amount of $24,000 for the period July 1 through June 30 of the following year. Prepare the year-end adjusting entry on December 31. Omit explanation.