1z0-961 Exam Dumps | You are using the Payable's Deferred Expense feature (also known as Multiperiod Accounting). You have

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Question 10/73

You are using the Payable's Deferred Expense feature (also known as Multiperiod Accounting). You have entered an invoice for a three-month lease that is entered on Jan 10th. The total expense is $12,000 and it covers the rental period from Jan 1st to mar 31st.
Assuming that the rental expenses are split evenly per month and a monthly accounting calendar is used, what would the accounting entry be?

A. On Mar 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000 On Jan 10th, Debit Prepaid Expense 12,000 and Credit Liability for 12,000

B. On Jan 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000 On Feb 28st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000

C. On Jan 10th, Debit Prepaid Expense 12,000 and Credit Liability for 12,000 and then
On Jan 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000 On Feb 28st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000 On Mar 31st, Debit Rental Expense for 4,000 and Credit Prepaid Expense for 4,000

D. On Jan 10th, Debit Prepaid Expense 12,000 and Credit Liability for 12,000

Question 10/73

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