The CHS Company Paid $30,000 Cash to Its Landlord on November

The CHS Company paid $30,000 cash to its landlord on November 1,2011 for rent covering the six-month period from November 1,2011 through April 30,2012.Which of the following doesn't correctly describe the effect of the December 31,2011 adjusting entry on CHS Company's financial statements? (Assume that no adjusting entries have been made during the year.)

A) Net income decreases $10,000.
B) Prepaid rent decreases $10,000.
C) Rent expense increases $10,000.
D) Stockholders' equity increases $10,000.