On July 1 the Fog Forest Gallery Paid $8,000 to Tapley

Multiple Choice

On July 1 the Fog Forest Gallery paid $8,000 to Tapley Realty for 4 months rent beginning July 1. Rent Expense was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by the Fog Forest is

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