On July 1, Rawling Store Paid $6,000 to Iceberg Realty

Multiple Choice

On July 1, Rawling Store paid $6,000 to Iceberg 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 Rawling Store is

A) debit rent expense, $6,000; credit prepaid rent, $6,000.
B) debit prepaid rent, $1,000; credit rent expense, $1,000.
C) debit prepaid rent, $6,000; credit rent expense, $6,000.
D) debit rent expense, $1,000; credit prepaid rent, $1,000.