The Balance in the Prepaid Rent Account Before Adjustment at the End

Multiple Choice

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

A) debit Prepaid Rent, $4,000; credit Rent Expense $4,000.
B) debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.
C) debit Rent Expense, $8,000; credit Prepaid Rent, $8,000.
D) debit Prepaid Rent, $8,000; credit Rent Expense, $8,000.