On October 1, 2012, Zane Corporation Paid $18,000 Rent in Advance

Multiple Choice

On October 1, 2012, Zane Corporation paid $18,000 rent in advance. The rent per month is $1,500. If Zane's accounting period ends on December 31, 2012, what will be reported on the financial statements?

A) Prepaid Rent of $13,500 on its balance sheet at December 31, 2012
B) Prepaid Rent of $18,000 on its balance sheet at December 31, 2012
C) Rent Expense of $18,000 on its 2012 income statement
D) Rent Revenue of $13,500 on its 2012 income statement