On July 1, Alaska Store Paid $12,000 to Snow Realty

Multiple Choice

On July 1, Alaska Store paid $12,000 to Snow Realty for six months rent, starting July 1.Prepaid Rent was debited for the full amount.If financial statements are prepared on July 31, the adjusting entry to be made by Alaska Store is

A) debit Rent Expense, $12,000; credit Prepaid Rent, $12,000.
B) debit Prepaid Rent, $2,000; credit Rent Expense, $2,000.
C) debit Prepaid Rent, $6,000; credit Rent Expense, $6,000.
D) debit Rent Expense, $2,000; credit Prepaid Rent, $2,000.