Lynnwood Services Prepaid 24 Months of Rent in Advance on October

question 36

Multiple Choice

Lynnwood Services prepaid 24 months of rent in advance on October 1, 2019. Lynnwood Services debited rent expense for the entire amount of $12,000. The adjusting entry on December 31, 2019, would include a:

• A)debit to prepaid rent for $1,500.
• B)debit to prepaid rent for $10,500.
• C)credit to rent expense for $1,500.
• D)debit to rent expense for $10,500.

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