If a company reporting on a calendar year basis, paid $18,000 cash on January 1 for one year of rent in advance (lease beginning January 1), and adjusting entries are made at the end of each month, the balance remaining in Prepaid Rent on December 1 should be $1,500. 

Answer the following statement true (T) or false (F)


True

$18,000 * 1/12 = $1,500

Business

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