6. The balance in the Prepaid Rent account before adjustment at the end of the...
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6. The balance in the Prepaid Rent account before adjustment at the end of the year is $12,000, which represents three months' rent paid on December1. The adjusting entry required on December 31 is to A) debit Rent Expense, $4,000; credit Prepaid Rent, $4,000. B) debit Rent Expense, $8,000; credit Prepaid Rent $8,000. C) debit Prepaid Rent, $4,000; credit Rent Expense, $4,000. D) debit Prepaid Rent, $8,000; credit Rent Expense, $8,000. 7. On July 1, Runner's Sports Store paid $8,000 to Acme Realty for 4 months rent beginning July 1. Prepaid Rent was debited for the full amount. If financial statements are prepared on July 31, the adjusting entry to be made by Runner's Sports Store isAe A) Debit Rent Expense, $8,000; Credit Prepaid Rent, 2,000. B) Debit Prepaid Rent, $2,000; Credit Rent Expense, $2,000. C) Debit Rent Expense, $2,000; Credit Prepaid Rent, $2,000. D) Debit Rent Expense, $8,000; Credit Prepaid Rent, $8,000
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