Williams Enterprises Prepaid Three Months of Office Rent Totaling $8,700

question 189

Multiple Choice

Williams Enterprises prepaid three months of office rent totaling $8,700 on October 1,2019.Assuming Williams records deferred expenses using the alternative treatment,what would be the entry on October 1,2019?

• A) Debit Prepaid Rent and credit Cash for $8,700
• B) No entry is needed until the expense is incurred
• C) Debit Cash and credit Unearned Rent for $8,700
• D) Debit Rent Expense and credit Cash for $8,700

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Definitions:

Form 941

The IRS tax form used by employers to report quarterly federal income tax withheld and Social Security and Medicare taxes.

Weekly Timesheet

A record used to detail the number of hours worked by an employee during a specific week, often used for payroll purposes.

Billable

Charges or fees that can be invoiced to a client or customer, especially for time or services rendered.

Customer Invoice

A document issued by a business to a customer, detailing products or services provided and the amount owed.