On December 31,2015 Winters Company's Prepaid Rent Account Had a Balance

question 111

Multiple Choice

On December 31,2015 Winters Company's Prepaid Rent account had a balance before adjustment of $6,000.Three months' rent was paid in advance on December 1.The adjusting entry needed on December 31 is:

• A)Debit Prepaid Rent $6,000;credit Cash $6,000.
• B)Debit Rent Expense $2,000;credit Accounts Payable $2,000.
• C)Debit Rent Expense $2,000;credit Prepaid Rent $2,000.
• D)Debit Cash $2,000;credit Prepaid Rent $2,000.
• E)Debit Rent Expense $6,000;credit Accounts Payable $6,000.

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