If the opening balance of rent accrued at the beginning of the year was $1,000, rent expense for the year was $20,000 and the closing balance of rent accrued at the end of the year was $1,200, the amount paid in cash for rent during the year is:
A) $22,200
B) $19,800
C) $21,000
D) $20,200

Question

Quizplus · Accepted Answer

The total rent expense for the year includes the opening balance of rent accrued and the rent paid during the year. Therefore, rent paid during the year can be calculated as follows:
Rent paid = Rent expense - Opening balance of rent accrued + Closing balance of rent accrued
Rent paid = $20,000 - $1,000 + $1,200
Rent paid = $19,200
Therefore, the correct option is B) $19,800.

If the Opening Balance of Rent Accrued at the Beginning