A Transaction in Which Six Months' Rent Is Paid in Advance

question 151

Multiple Choice

A transaction in which six months' rent is paid in advance results in which of the following journal entries?

• A) Prepaid Rent - Debit; Cash - Credit
• B) Rent Receivable - Debit; Cash - Credit
• C) Rent Revenue - Debit; Cash - Credit
• D) Rent Expense- Debit; Cash - Credit

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