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

question 208

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 paid on December 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, $4,000; credit Prepaid Rent, $4,000.

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Definitions:

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.

Environmental Resistance

Total of factors in the environment that limit the numerical increase of a population in a particular region.

Carrying Capacity

The maximum population size of a species that an environment can sustain indefinitely, given the food, habitat, water, and other necessities available in the environment.

Exponential Growth

Growth, particularly of a population, in which the increase occurs in the same manner as compound interest.