Mr. Chatty's paid June rent for the building its restaurant occupies. This transaction is recorded with a

Question

Quizplus · Accepted Answer

When Mr. Chatty pays rent for its restaurant building, it is recorded as a credit to Cash (since cash is going out of the business) and a debit to Rent Expense (since rent expense is an expense and it has to be recorded as such). Therefore, option B, credit to Cash, is the correct answer.

Mr Chatty's Paid June Rent for the Building Its Restaurant