On 1 July the Winter Shoe Store paid $6,000 to Ace Realty for 6 month's rent beginning 1 July. Prepaid Rent was debited for the full amount. If financial statements are prepared on 31 July, the adjusting entry to be made by the Winter Shoe Store is:
A) Debit Rent expense, $6,000; Credit Prepaid rent, $1,000.
B) Debit Prepaid rent, $1,000; Credit Rent expense, $1,000.
C) Debit Rent expense, $1,000; Credit Prepaid rent, $1,000.
D) Debit Rent expense, $6,000; Credit Prepaid rent, $6,000.
Correct Answer:
Verified
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