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Problem
On May 1, 2014, Caldonia Company paid East Alabama Rentals $37,000 for a 12-month lease on warehouse space.
Required
a. Record the deferral and the related December 31, 2014, adjustment for Caldonia Company in the accounting equation.
b. Record the deferral and the related December 31, 2014, adjustment for East Alabama Rentals in the accounting equation.
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