On December 1,2014,Hazel Corporation paid $8,000 rent in advance.The rent per month is $1,000.If Hazel's accounting period ends on December 31,2014,what will be reported on the financial statements?
A) Prepaid Rent of $7,000 on its balance sheet at December 31,2014
B) Prepaid Rent of $8,000 on its balance sheet at December 31,2014
C) Rent Expense of $8,000 on its 2014 income statement
D) Rent Revenue of $7,000 on its 2014 income statement
Correct Answer:
Verified
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