Balance day adjustment question

[schopra]

Hi how do you work out the balance day adjustment for the rent? in order to put it into the general journal?

Thanks

[Viticous]

Hi, What question number is that exercise?

[schopra]

10.13

[Champ101]

Hi how do you work out the balance day adjustment for the rent? in order to put it into the general journal?

Thanks

Basically, it is known that on the 1st April 2015 to the 1st August 2015 there is $6000 dollars in prepaid rent. Since there is 5 months between those two dates it means that $1200 will be used up each month. Therefore, for the month of March (1st March 2015 to 31st March 2015) $1200 of prepaid rent will become the expense of rent.

Hope this helps!

[schopra]

Sorry for the late reply but thank you very much!

[Sidhant Gupta]

My tutor told me that balance day adjustment is done once in a reporting period.