On 1 July the Winter Shoe Store paid $6,000 to Ace Realty for 6month’s rent beginning 1 July. Prepaid Rent was debited for thefull amount. If financial statements are prepared on 31 July, theadjusting entry to be made by the Winter Shoe Store is:
Select one:
a. Debit Rent expense, $6,000; Credit Prepaid rent, $6,000
b. Debit Prepaid rent, $1,000; Credit Rent expense, $1,000
c. Debit Rent expense, $1,000; Credit Prepaid rent, $1,000
d. Debit Rent expense, $6,000; Credit Prepaid rent, $6,000
e. None of the above
