Prepaid Rent in the worksheet's unadjusted trial balance column is $6,000.Prepaid Rent in the balance sheet column is $4,000.Which of the following entries would have caused this difference?
A) a $2,000 debit entry to Prepaid Rent in the worksheet's adjustments column
B) a $2,000 credit entry to Rent Expense in the worksheet's adjustments column
C) a $2,000 credit entry to Prepaid Rent in the worksheet's adjustments column
D) a $2,000 credit entry to Rental Revenue in the worksheet's adjustments column

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 (assuming no other changes were made to Rent Expense or Rental Revenue). Choice A would increase Prepaid Rent and not explain the difference. Choice B would decrease Rent Expense but not affect Prepaid Rent. Choice D would not impact Prepaid Rent at all.

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