(Solved by Humans)-Your Turn 3-4 When Advantage Company made the rent payment on March 1, the company recorded a...

Question

Your Turn 3-4 When Advantage Company made the rent payment on March 1, the company recorded a decrease in cash and an increase in the  asset prepaid  rent. Now,  it is  10 months  later, and 10 months' worth of rent has been used . That means it should be recorded  as rent expense. The  March   1 payment  was  $3,600  for  1 year,  which  means  $300  per  month.  Now,  10 months  at $300 per month  = $3,000 must be deducted  from prepaid rent and added to   rent expense. Then, $3,000 of rent paid on March 1 will be shown on the income statement.