Introduction to Adjusting Journal Entries and Prepaid Expenses Video Lessons

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Problem: If Robert paid for 6 months of rent in advance on 7/1/16 for $4,800 ($800 per month).  What is the journal entry required on 7/1/16? a. Debit Rent Expense and Credit Prepaid Rent b. Debit Prepaid Rent and Credit Accounts Payable c. Debit Prepaid Rent and Credit Cash d. Debit Rent Expense and Credit Prepaid Liability

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If Robert paid for 6 months of rent in advance on 7/1/16 for $4,800 ($800 per month).  What is the journal entry required on 7/1/16?

a. Debit Rent Expense and Credit Prepaid Rent

b. Debit Prepaid Rent and Credit Accounts Payable

c. Debit Prepaid Rent and Credit Cash

d. Debit Rent Expense and Credit Prepaid Liability

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