Coyote Co Paid $8,000 Rent in Advance

question 15

Multiple Choice

Coyote Co. paid $8,000 rent in advance. The journal entry would require:

• A)debit to Cash, credit to Rent Expense.
• B)debit to Cash, credit to Prepaid Rent.
• C)debit to Rent Expense, credit to Cash.
• D)debit to Prepaid Rent, credit to Cash.

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Definitions:

Real Property

Land and any permanent structures or improvements attached to it, such as buildings and houses, legally recognized as immovable.

Easement

A privilege to traverse or make use of another individual's property for a particular reason.

Chattel

Movable assets distinct from land or buildings.

Leasehold Estate

An interest in real property that gives the holder the right to possession and use of the property for a specified term under a lease.