On June 15, Tandem Toys signed a lease to rent a storefront starting on July 1st for the next two years at $1,000 per month. They paid the first two months' rent in advance on signing the lease. On June 15, how would the transaction be recorded?
A) Dr. Rent expense $2,000, Cr. Cash $2,000
B) Dr. Prepaid rent $24,000, Cr Cash $2,000 Cr. Rent payable $22,000
C) Dr. Prepaid rent $2,000, Cr. Cash $2,000
D) Dr. Rent expense $24,000, Cr. Cash $24,000
Correct Answer:
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