On July 1, Omega, Inc. paid rent of $15,000 for a small equi

On July 1, Omega, Inc. paid rent of $15,000 for a small equipment storage area from July 1 until December 31. Provide the adjusting journal entry on July 31. (Ignore explanation). Assume the deferred expense is initially recorded as an asset.

What will be an ideal response

ANSWER

Rent Expense 2,500
Prepaid Rent 2,500 .Rent Expense = $15,000 × 1/6 = $2,500