FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Our business paid 48.000 TL from the bank for the store it rented for two years on 01.07.2020 . (The entity prepares its financial statements on a monthly basis.) Accordingly, in which account, how and in what amount is the rental expense for July 2020 recognized?  
 
 a)

180 Expenses for Future Months Hs. 10,000 TL Borrowed

 B)

280 Expenses for Future Years Hs. 36,000 TL Debtor

 NS)

760 Marketing Sales and Distribution Expenses 2.000 TL Debtor

 D)

102 Banks Hs. 48,000 TL Creditor

 TO)

760 Marketing Sales and Distribution Expenses 2.000 TL Creditor

Expert Solution
Check Mark
Step 1 : Explanation

Journal Entry 

Date Particulars L.F. Debit Credit
2020        
01 July  Prepaid Marketing Sales and Distribution Expenses A/c                             Dr   48.000 TL  
       To Bank A/c     48.000 TL
  ( Being rent paid  in advance )      
         
31 July  Marketing Sales and Distribution Expenses A/c  ( 48.000 TL / 24 months )  Dr   2.000 TL  
      To Prepaid Marketing Sales and Distribution Expenses A/c                        2.000 TL
  ( Being Marketing Sales and Distribution Expenses charged for the month of July)      
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