Problem:
On September 1, Northhampton Industries signed a six-month lease for office space, which is effective September 1. Northhampton agreed to prepay the rent and mailed a check for $12,000 to the landlord on September 1. Assume that Northhapmton prepares adjustments only four times a year: on March 31, June 30, Spetember 30 and December 31.
Required:
Question 1: Compute the rental cost for each full month.
Question 2: Identify and analyze the effect of the transaction payment of rent on September 1.
Question 3: Identify and analyze the effect of the adjustment on September 30.
Note: Please provide full description.