On 1 March 2013, Joy Company Paid $4 000 in Advance

Multiple Choice

On 1 March 2013, Joy Company paid $4 000 in advance for an 8- month rental space covering the period of March 2013 to October 2013. The business makes adjusting entries once a year on 30 June. The adjusting entry at 30 June 2013 would include a:

A) credit of $2 000 to Rent expense on 30 June 2013.
B) debit of $2 000 to Rent expense on 30 June 2013.
C) debit of $4 000 to Prepaid rent expense on 30 June 2013.
D) debit of $2 000 to Prepaid rent expense on 30 June 2013.