The journal entry to record the payment of the monthly rent would include:
A)a debit to Rent Expense and a credit to Capital.
B)a debit to Rent Expense and a credit to Accounts Receivable.
C)a debit to Capital and a credit to Cash.
D)a debit to Rent Expense and a credit to Cash.

Question

Quizplus · Accepted Answer

The payment of monthly rent would result in a decrease in Cash (since cash is being paid out) and an increase in Rent Expense (since rent is an operating expense). Therefore, the journal entry to record the payment of monthly rent would be a debit to Rent Expense and a credit to Cash.

The Journal Entry to Record the Payment of the Monthly