acfi how

On September 1, 2014, Caldonia Company paid East Alabama Rentals $38,000 for a 12-month lease on warehouse space. Requireda. Record the deferral and the related December 31, 2014, adjustment for Caldonia Company in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances with a minus sign.)

Adjustment for 4 months used: $38,000 × 4/12 = $12,667.

Record the deferral and the related December 31, 2014, adjustment for East Alabama Rentals in the accounting equation. (Do not round intermediate calculations and round your final answers to nearest whole number. Enter any decreases to account balances with a minus sign.)

Earned 4 months rent : $38,000 × 4/12 = $12,667.