The balance in the Prepaid Rent account before
adjustment at the end of the year is $12,000 and represents three months’ rent
paid on 1 December. The adjusting entry required on 31 December is:

Question

Accepted Answer

Debit (increase) Rent Expense by $4,000 and credit (decrease) Prepaid Rent by $4,000

Answer

Debit (increase) Prepaid Rent by $8,000 and credit (decrease) Rent Expense by $8,000

Answer

Debit (increase) Prepaid Rent by $4,000 and credit (decrease) Rent Expense by $4,000

Answer

Debit (increase) Rent Expense by $12,000 and credit (decrease) Prepaid Rent by $12,000

Crowdly

The balance in the Prepaid Rent account before adjustment at the end of the year...

Want instant access to all verified answers on learning.monash.edu?