Prepaid Expenses Adjusting Entries
On a company's Unadjusted Trial Balance at December 31 2004, there is a Prepaid Expenses balance of $15,600.
On March 1 2002, the company prepaid $36,000 for a three-year rental lease with occupancy commencing on the payment date. The remaining balance in the prepaid expenses account pertains to a two-year fire insurance policy purchased on April 1 2004.
Question: What will be the net adjustment to the prepaid expenses account on the December 31 2004 Adjusted Trial Balance?