Prepaid Rent in the worksheet's unadjusted trial balance column is $7,000. Prepaid Rent in the balance sheet column is $6,000. Which of the following entries would have caused this difference?

Question

Quizplus · Accepted Answer

A credit entry to Prepaid Rent in the adjustments column would decrease the amount of Prepaid Rent in the unadjusted trial balance column, resulting in a lower balance in the balance sheet column. Therefore, option C is the correct choice as it would cause the $1,000 difference between the two columns. Option A, a debit to Prepaid Rent, would increase its balance in both columns. Option B, a credit to Rent Expense, and option D, a credit to Rental Revenue, would not affect the Prepaid Rent account at all.

Prepaid Rent in the Worksheet's Unadjusted Trial Balance Column Is