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The Balance in the Prepaid Rent Account Before Adjustment at the End

Question 16

Short Answer

The balance in the prepaid rent account before adjustment at the end of the year is $15 000,which represents three months' rent paid on May 1.The adjusting entry required on June 30 is:
A. DR Rent expense $10000 CR Prepald rent $10000B. DR Rent expense $5000 CR Prepaid rent $5000C. DR Prepaid rent $10000 CR Rent expense $10000D. DR Prepaid rent $5000 CR Rent expense $5000\begin{array}{llll}A. \text { DR Rent expense } & \$ 10000 & \text { CR Prepald rent } & \$ 10000 \\B. \text { DR Rent expense } & \$ 5000 & \text { CR Prepaid rent } & \$ 5000 \\C. \text { DR Prepaid rent } & \$ 10000 & \text { CR Rent expense } & \$ 10000 \\D.\text { DR Prepaid rent } & \$ 5000 & \text { CR Rent expense } & \$ 5000\end{array}

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