On December 31,2015,Hoosier Inc.paid $10,000 to rent a storage facility from July 1,2016 to July 1,2017.Which of the following statements about the effect of this transaction on Hoosier' financial statements is correct?
A) Prepaid Rent in the amount of $10,000 will be reported as a liability on the balance sheet at December 31, 2015.
B) Rent Expense in the amount of $10,000 should be reported on the income statement for the year ended December 31, 2015.
C) The income statement for the year ended December 31, 2015 is unaffected by this transaction.
D) The balance sheet at December 31, 2016 will not report any assets relating to this transaction.
Correct Answer:
Verified
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