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

question 12

Multiple Choice

The balance in the Prepaid Rent account before adjustment at the end of the year is $21,000, which represents three months' rent paid on December 1.The adjusting entry required on December 31 is to

• A)debit Rent Expense, $7,000; credit Prepaid Rent, $7,000.
• B)debit Rent Expense, $14,000; credit Prepaid Rent $14,000.
• C)debit Prepaid Rent, $7,000; credit Rent Expense, $7,000.
• D)debit Prepaid Rent, $14,000; credit Rent Expense, $14,000.

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Definitions:

Observational Methods

Research techniques that involve observing subjects in their natural environment without manipulation.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact through controlled conditions.

Experiment

A procedure carried out to support or refute a hypothesis, often involving the manipulation of variables to observe the effect on some behavior or condition.

Deliberately Exposing

Intentionally subjecting subjects (in an experiment) or oneself to certain conditions or stimuli to observe the effects.