On May 15th, Bain Bathtubs Signed a Lease to Rent

Multiple Choice

On May 15th, Bain Bathtubs signed a lease to rent a storefront starting on June 1st for the next two years at $1,000 per month.They paid the first two months' rent in advance on signing the lease.On May 15th how would the transaction be recorded?

A) An increase in expenses of $2,000 and a decrease in cash of $2,000.
B) An increase in expenses of $24,000 and a decrease in cash of $24,000.
C) An increase in prepaid rent of $2,000 and a decrease in cash of $2,000.
D) An increase in prepaid rent of $24,000 and a decrease in cash of $24,000.