Answer:
Dr Rent Expense $4,320
Cr Prepaid Rent $4,320
Explanation:
Preparation of the adjusting Journal entry to be made by the Wildhorse Co.
Based on the information given we were told that the company paid the amount of $25,920 to another company which is Acme Realty for 6 months rent that begins July 1 in which the Prepaid Rent was as well debited for the full amount, Hence the adjusting Journal entry to be made by the Wildhorse Co will be to:
Dr Rent Expense $4,320
Cr Prepaid Rent $4,320
($25,920/6 months)
