On July 1, Runner's Sports Store Paid $12,000 to Acme

question 172

Multiple Choice

On July 1, Runner's Sports Store paid $12,000 to Acme Realty for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by Runner's Sports Store is

• A) Debit Rent Expense, $12,000; Credit Prepaid Rent, $3,000.
• B) Debit Prepaid Rent, $3,000; Credit Rent Expense, $3,000.
• C) Debit Rent Expense, $3,000; Credit Prepaid Rent, $3,000.
• D) Debit Rent Expense, $12,000; Credit Prepaid Rent, $12,000.

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Definitions:

Value Orientation

The principles and beliefs that influence an individual's or organization's behavior and decision-making.

Decision-making Style

An individual's or group's habitual approach to making choices, often characterized by specific preferences, strategies, and biases.

Interaction Patterns

Recurrent dynamics and behaviors observed within interpersonal interactions or between groups.

Group's Attraction

Group's attraction refers to the qualities or factors that draw members together and contribute to their willingness to be part of the group.