8-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

Journal Entry Date Particulars L.F. Debit Credit 2020 01 July Prepaid Marketing…

Answered: Our business paid 48.000 TL from the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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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