On September 1,2014,Joy Inc

Multiple Choice

On September 1,2014,Joy Inc.paid $8,000 in advance for an 8-month rental space covering the period of September,2014 through April,2015.The prepaid expense was initially recorded as an asset.Joy Inc.makes adjusting entries once a year at year-end.The adjusting entry on December 31,2014 would include a ________.

A) debit of $8,000 to Cash
B) credit of $8,000 to Prepaid Rent.
C) debit of $4,000 to Rent Expense
D) credit of $4,000 to Rent Expense