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)$21,000.
C)$20,200.
D)$19,800.

Question

Quizplus · Accepted Answer

The amount paid in cash for rent during the year can be calculated by adjusting the rent expense for the year by the change in the accrued rent balance. The calculation is as follows: Rent expense for the year ($20,000) + Opening accrued rent ($1,000) - Closing accrued rent ($1,200) = $19,800.

If the Opening Balance of Rent Accrued at the Beginning