On December 1 your company opens for business and leases space in a building for...
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Accounting
On December 1 your company opens for business and leases space in a building for $1,000 per month and pays 3 months' rent in advance. On Dec. 31 the balance in rent expense is $3,000. On the basis of this information you may conclude that the advance payment for rent...
a. was recorded in prepaid rent which must now be credited for $1,000
b. was recorded in rent expense which must now be credited for $2,000
c. was recorded in prepaid rent which must now be debited for $1,000
d. was recorded in rent expense which must now be debited for $2,000
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