A Company Records a Transaction in Which Six Months' Rent

question 132

Multiple Choice

A company records a transaction in which six months' rent is paid in advance.Which of the following journal entries records the transaction?

• 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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