n of February 2022. d: the Prepaid Rent 3 Fun in February 20: Rent

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Indoor Fun is a business offering various indoor sports activities to its customers and rent is one of its
largest expenses. Its partially filled Prepaid Rent account below is missing an additional $66,000 (GST-
inclusive) prepaid for rent by Indoor Fun on February 8, 2022 and the recognition of rent expense for
the month of February 2022.
Required:
Complete the Prepaid Rent 3-column ledger below to find out the amount of rent expense incurred
by Indoor Fun in February 2022. GST needs to be accounted for.
Prepaid Rent
Date
Explanation
Dr ($)
Cr ($)
Balance ($)
01/2/2022
Opening Balance
33,000
33,000 DR
28/2/2022
Closing Balance
24,000 DR
Using the General Journal below, record the additional $66,000 (GST-inclusive) prepaid for rent and
record the rent expense for the month of February 2022 following the completion of Prepaid Rent 3-
column ledger above. GST needs to be accounted for. Narrations are not required.
Date
Account titles (Details)
Dr ($)
Cr ($)
Transcribed Image Text:Indoor Fun is a business offering various indoor sports activities to its customers and rent is one of its largest expenses. Its partially filled Prepaid Rent account below is missing an additional $66,000 (GST- inclusive) prepaid for rent by Indoor Fun on February 8, 2022 and the recognition of rent expense for the month of February 2022. Required: Complete the Prepaid Rent 3-column ledger below to find out the amount of rent expense incurred by Indoor Fun in February 2022. GST needs to be accounted for. Prepaid Rent Date Explanation Dr ($) Cr ($) Balance ($) 01/2/2022 Opening Balance 33,000 33,000 DR 28/2/2022 Closing Balance 24,000 DR Using the General Journal below, record the additional $66,000 (GST-inclusive) prepaid for rent and record the rent expense for the month of February 2022 following the completion of Prepaid Rent 3- column ledger above. GST needs to be accounted for. Narrations are not required. Date Account titles (Details) Dr ($) Cr ($)
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