On December 31,Jacoby Company's Prepaid Rent Account Had a Balance

Multiple Choice

On December 31,Jacoby Company's Prepaid Rent account had a balance before adjustment of $6,000.Three months' rent was paid in advance on December 1,the first day of the lease term.The adjusting entry needed on December 31 is:

A) Debit Prepaid Rent $6,000; credit Cash $6,000.
B) Debit Rent Expense $2,000; credit Accounts Payable $2,000.
C) Debit Rent Expense $2,000; credit Prepaid Rent $2,000.
D) Debit Cash $2,000; credit Prepaid Rent $2,000.
E) Debit Rent Expense $6,000; credit Accounts Payable $6,000.