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

question 49

Multiple Choice

The balance in the Prepaid Rent account before adjustment at the end of the year is $15,000, which represents three months' rent paid on December1. The adjusting entry required on December 31 is to

• A) debit Rent Expense, $5,000; credit Prepaid Rent, $5,000.
• B) debit Rent Expense, $10,000; credit Prepaid Rent $10,000.
• C) debit Prepaid Rent, $5,000; credit Rent Expense, $5,000.
• D) debit Prepaid Rent, $10,000; credit Rent Expense, $10,000.

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Definitions:

Proactive

Taking initiative by acting in advance of future situations or problems, rather than just reacting to them as they occur.

Building Trust

The process of establishing confidence and reliability in relationships through consistent actions and honesty.

One-Way Process

A type of communication or operation that moves in a single direction, without receiving feedback or interaction from the receiving end.

Encouraging Employees

Involves motivating and supporting staff to achieve their personal best and contribute positively to the organization.