Use this information to answer the following question. The trial balance for Nowwick Company appears as follows:

-If as of December 31,2014,the rent of $100 for December had not been recorded or paid,the adjusting entry would include a
A)debit to Rent Expense for $100.
B)debit to Rent Payable for $100.
C)credit to Cash for $100.
D)credit to Accumulated Rent for $100.

Question

Use this information to answer the following question. The trial balance for Nowwick Company appears as follows:

-If as of December 31,2014,the rent of $100 for December had not been recorded or paid,the adjusting entry would include a
A)debit to Rent Expense for $100. 
B)debit to Rent Payable for $100. 
C)credit to Cash for $100. 
D)credit to Accumulated Rent for $100.

Quizplus · Accepted Answer

The adjusting entry would involve debiting Rent Expense for $100 since rent for December had not been recorded. This would increase the Rent Expense account, reflecting the actual expense incurred by the company. There is no need to credit Cash or Accumulated Rent, and Rent Payable is not used in this scenario since the rent has not yet been paid.

Use This Information to Answer the Following Question