Multiple Choice
On December 31,2015 Winters Company's Prepaid Rent account had a balance before adjustment of $6,000.Three months' rent was paid in advance on December 1.The adjusting entry needed on December 31 is:
A) Debit Prepaid Rent $6,000;credit Cash $6,000.
B) Debit Rent Expense $2,000;credit Accounts Payable $2,000.
C) Debit Rent Expense $2,000;credit Prepaid Rent $2,000.
D) Debit Cash $2,000;credit Prepaid Rent $2,000.
E) Debit Rent Expense $6,000;credit Accounts Payable $6,000.
Correct Answer:

Verified
Correct Answer:
Verified
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