On July 1 the Fisher Shoe Store Paid $18,000 to Acme

Multiple Choice

On July 1 the Fisher Shoe Store paid $18,000 to Acme Realty for 6 months rent beginning 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 the Fisher Shoe Store is:

A) debit Rent Expense, $18,000; credit Prepaid Rent, $3,000.
B) debit Prepaid Rent, $3,000; credit Rent Expense, $3,000.
C) debit Rent Expense, $3,000; credit Prepaid Rent, $3,000.
D) debit Rent Expense, $18,000; credit Prepaid Rent, $15,000.