The balance in the prepaid rent account before adjustment at the end of the year is $12,864, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is a. debit Rent Expense, $9,648, credit Prepaid Rent, $3,216 b. debit Rent Expense, $3,216, credit Prepaid Rent, $3,216 c. debit Prepaid Rent, $9,648, credit Rent Expense, $3,216 d. debit Prepaid Rent, $3,216, credit Rent Expense, $3,216

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The balance in the prepaid rent account before adjustment at the end of the year is $12,864, which represents four months' rent paid on December 1. The adjusting entry required on December 31 is

a. debit Rent Expense, $9,648, credit Prepaid Rent, $3,216
b. debit Rent Expense, $3,216, credit Prepaid Rent, $3,216
c. debit Prepaid Rent, $9,648, credit Rent Expense, $3,216
d. debit Prepaid Rent, $3,216, credit Rent Expense, $3,216
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