Hank's Tax Planning Service started business in January,2012.He rented an office for $900 a month starting January 1.He prepaid the rentals through June 30.He makes accrual adjustments monthly.As of April 30,Hank's ledger shows a balance in Prepaid Rent of how much?
A) $1,800
B) $900
C) $2,700
D) $5,400

Question

Quizplus · Accepted Answer

A) Calculations: $900 × 6 = $5,400 × 2/6 = $1,800

Hank's Tax Planning Service Started Business in January,2012