On January 1, Mountbatten Corporation Paid $14,000 for a Year's

Multiple Choice

On January 1, Mountbatten Corporation paid $14,000 for a year's advance rent on a building and recorded it as Rent Expense. The rental period begins on January 1. When financial statements are prepared on March 31, the adjusting entry should include ________. (Do not round intermediary calculations. Only round your final answer to the nearest dollar.)

A) a credit to Cash for $10,500
B) a credit to Rent Expense for $10,500
C) a credit to Prepaid Rent for $3,500
D) a debit to Rent Expense for $3,500