Question

how is this wrong? what is the right number for prepaid rent

Required information Prepare Wells Technical Institute's balance sheet as of December 31. Include all balanc balances. WELLS TECHNICAL INSTITUTE Balance Sheet December 31 Assets SIS $ 26,491 8,100 2,662 12,213 2,039 15.252 Cash Accounts receivable Teaching supplies Prepaid insurance Prepaid rent Professional library Accumulated depreciation-Professional library Equipment Accumulated depreciation Equipment Total assets Liabilities Accounts payable Salaries payable Unearned training fees 30,565 15,313 101.000 28,588 72,412 139,169 26,000 400 8,400 Total liabilities 34,800 Equity Common stock Retained earnings 17,380 84,950 Total equity Total liabilities and equity 102,330 137,130 $ < Prev 6 of 3,919

Answer 1

Prepaid rent amount is 0

We can see in additional information that Prepaid Rent represents rent for December. We are preparing Balance sheet as of December 31. So ,the prepaid rent has expired, it is now no longer a prepaid rent and is now considered as an expense.