Which of the following would be the adjusting journal entry to expense prepaid rent for the period?
A)Dr.Prepaid rent, Cr.Rent expense
B)Dr.Rent expense, Cr.Cash
C)Dr.Prepaid rent, Cr.Cash
D)Dr.Rent expense, Cr.Prepaid rent

Question

Quizplus · Accepted Answer

To expense prepaid rent for the period, we need to decrease the prepaid rent asset and recognize rent expense for the period. Therefore, we need to debit rent expense and credit prepaid rent in the adjusting journal entry. This is shown in option D. Option A, C, and B are incorrect as they don't involve both prepaid rent and rent expense accounts.

Which of the Following Would Be the Adjusting Journal Entry