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If a Company Reporting on a Calendar Year Basis, Paid

Question 95

True/False

If a company reporting on a calendar year basis, paid $18,000 cash on January 1 for one year of rent in advance and adjusting entries are made at the end of each month, the balance remaining in Prepaid Rent on December 1 of that year should be $1,500.
$18,000 * 1/12 = $1,500

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