On July 1 the Fisher Shoe Store Paid $24000 to Acme

question 41

Multiple Choice

On July 1 the Fisher Shoe Store paid $24000 to Acme Realty for 6 months rent beginning July 1.Prepaid Rent was increased for the full amount.If financial statements are prepared on July 31 the adjustment to be made by the Fisher Shoe Store is:

• A)increase Rent Expense $24000; decrease Prepaid Rent $4000.
• B)increase Prepaid Rent $4000; decrease Rent Expense $4000.
• C)increase Rent Expense $4000; decrease Prepaid Rent $4000.
• D)increase Rent Expense $24000; decrease Prepaid Rent $20000.