Stancil Enterprises Prepaid Four Months of Office Rent Totaling $8,100

question 127

Multiple Choice

Stancil Enterprises prepaid four months of office rent totaling $8,100 on October 1,2017.Assuming Stancil records deferred expenses using the alternative treatment,what would be the adjusting entry recorded on December 31,2017?

• A)Debit Rent Expense and credit Prepaid Rent for $6,075
• B)No entry is needed since Rent Expense was recorded on October 1,2017
• C)Debit Prepaid Rent and credit Rent Expense for $2,025
• D)Debit Prepaid Rent and credit Rent Expense for $24,300

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