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Financial Accounting

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Moderate

Adjusting Entries: Deferred Expenses

FINACT-PJQEXI

Which of the following is the appropriate entry on a company’s books to record the subsequent use of building space for which a company previously paid in advance and recorded as Prepaid Rent?

A

Rent Expense . . . \$XXXX

Prepaid Rent . . . \$XXXX

B

Prepaid Rent . . . \$XXXX

Cash . . . \$XXXX

C

Rent Expense . . . \$XXXX

Cash . . . \$XXXX

D

Prepaid Rent . . . \$XXXX

Rent Expense . . . \$XXXX