Answer:
Amount of adjusting entry was $400
Remaining Balance of Prepaid rent account was $800
Explanation:
Prepaid Rent Expense account is made to calculate the remaining balance of prepaid rent:
Prepaid Rent Account DR. CR. Balance
Apr 1. Prepaid rent $1,200 $1,200
Apr 30. Rent Expense for April $400 $800
The remaining balance of prepaid rent account was $800.
$400 was transferred to expense account because rent expense was accrued and adjusted for one month as follows
$1,200 x (1/3) = $400
The remaining balance is $800 ( $1,200 - $400 ).
