Accounting ? about prepaid rent that im having trouble with?

Question

The adjusted trial balance on the worksheet shows Prepaid Rent, $3000, and Rent Expense, $2,500. What was the balance in Prepaid Rent account before the adjustment

Answer 1

Prepaid rent before adjustments would be $5500.00 if there is no Rent expense in your Preliminary Trial Balance.  Otherwise you have to take that in consideration too.  Simply add back the difference of the Adj. Rent Expense to the Prelim. Rent Expense (if any) to the Prepaid Rent Final Amount to give you the balance in the Prepaid Rent in the Preliminary Trial Balance.

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Answer 2

Look at the GL account balance for the Prepaid Rent account. This should be the same amount you transferred to the unadjusted TB. This would be the balance before the adjustment. Besides the expense you may have had another transaction that - increased - Prepaid Rent during the period.

If not, 3,000 + 2,500 = 5,500 Balance before adjustment.