
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:15. The balance in the Prepaid Rent account before adjustment at the end of the year is $24,000,
which represents three months' rent paid on December 1. The adjusting entry required on
December 31 is to
a. debit Rent Expense, $8,000; credit Prepaid Rent, SS,000.
b. debit Rent Expense, $16,000; credit Prepaid Rent $16,000.
c. debit Prepaid Rent, $8,000; credit Rent Expense, $8,000.
d. debit Prepaid Rent, $16,000; credit Rent Expense, $16,000.
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