Answer to Question #80416 in Economics for lutho

Question

the account period of meander enterprises ends on the last day of february each year. on 28 february 2017, the total of the rent expenses account was R41100. rent was paid up to 31 march 2017.notes: rent expense increased by 10% with effect from 01 september 2016. which will be the correct journal entry to adjust the rent expense account on 28 february 2017?

Answer 1

The account period of meander enterprises ends on the last day of february each year.
On 28 february 2017, the total of the rent expenses account was R41100. Rent was paid up to 31 march 2017.
If rent expense increased by 10% with effect from 01 september 2016, then the correct journal entry to adjust the rent expense account on 28 february 2017 will be to add 0.1*41100 = R4110 to the rent expenses account.