Davos Limited Had $1,500 in Prepaid Rent at the Beginning

Multiple Choice

Davos Limited had $1,500 in prepaid rent at the beginning of the month, representing three months' worth of rent paid in advance.What is the correct adjusting entry at the end of the month?

A) Dr.Prepaid rent $500, Cr.Rent expense $500
B) Dr.Rent expense $500, Cr.Prepaid rent $500
C) Dr.Rent expense $1,000, Cr.Prepaid Rent $1,000
D) Dr.Prepaid rent $1,000, Cr.Rent expense $1,000