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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Exercise 15-27 Â Adjustment for Prepaid Rent
Jarem Company showed $189,000 in prepaid rent on December 31, 2013. On December 31, 2014, the balance in the prepaid rent account was $226,800. Rent expense for 2014  was
$472,500.
Â
Required:
1.      What amount of cash was paid for rent in 2014?
2.      CONCEPTUAL CONNECTION What adjustment in prepaid expenses is needed if the indi- rect method is used to prepare Jarem’s statement of cash flows?
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