Pine Corporation Makes Adjusting Entries Monthly

Multiple Choice

Pine Corporation makes adjusting entries monthly. As of March 31, the general ledger shows Prepaid Rent to have a debit balance of $6,000. Rent expires at a rate of $1,200 per month. No entry for rent has been recorded in the month of March. What adjusting entry is necessary at March 31?

A) Prepaid Rent 500
Cash 500
B)
Rent Expense 1,200
Cash 1,200
C)

D)
Prepaid Rent 6,000
Rent Expense 6,000