Answer:
$12,000
Explanation:
the journal entry to record the payment of prepaid rent is:
September 1, 20x1, prepaid rent
Dr Prepaid rent 48,000
Cr Cash 48,000
The adjusting entry to record rent expense on December 31, 20x1 should be:
December 31, 20x1, rent expense
Dr Rent expense 32,000
Cr Prepaid rent 32,000
Rent expense = ($48,000 / 6) x 4 months = $32,000
the ending balance of the prepaid rent account is $12,000
