The Balance in the Prepaid Rent Account Before Adjustment at the End

question 47

Multiple Choice

The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000 and represents three months rent starting on November 1.The adjusting entry required on December 31 is

• A)debit Prepaid Rent, $4,000; credit Rent Expense $4,000.
• B)debit Prepaid Rent, $8,000; credit Rent Expense, $8,000.
• C)debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.
• D)debit Rent Expense, $8,000; credit Prepaid Rent, $8,000.

---

Definitions:

Hawaiian Islands

An archipelago in the central Pacific Ocean, constituting the 50th state of the United States, known for its rich cultural heritage and natural beauty.

Spanish-American War

A conflict in 1898 between Spain and the United States, resulting from U.S. intervention in the Cuban War of Independence.

Naval Bases

Designated areas where a country's naval ships, personnel, and resources are stationed and maintained.

Carved Up

A colloquial expression meaning divided or partitioned, often referring to territories or areas split between different powers or interests.