The balance in the prepaid rent account before adjustment at the end of the year is $24,000, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is
A) debit Rent Expense, $6,000; credit Prepaid Rent, $6,000
B) debit Prepaid Rent, $18,000; credit Rent Expense, $6,000
C) debit Rent Expense, $18,000; credit Prepaid Rent, $6,000
D) debit Prepaid Rent, $6,000; credit Rent Expense, $6,000
Correct Answer:
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