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

question 119

Multiple Choice

The balance in the prepaid rent account before adjustment at the end of the year is $15,000 and represents three months rent paid on December 1. The adjusting entry required on December 31 is:

• A) debit Prepaid Rent, $5,000; credit Rent Expense $5,000.
• B) debit Prepaid Rent, $10,000; credit Rent Expense, $10,000.
• C) debit Rent Expense, $15,000; credit Prepaid Rent, $15,000.
• D) debit Rent Expense, $5,000; credit Prepaid Rent, $5,000.

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Definitions:

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