Answer: debit Rent Expense, $2,000; credit Prepaid Rent, $2,000---D
Explanation:
Balance in Prepaid rent account = $10,000
Rent expense = $10,000/5 months = $2,000
Adjusting journal entry To record the expiration of rent for December month
Date Accounts Titles and Explanations Debit Credit
Dec. 31 Rent Expense ($10,000/5 months) $2,000
Prepaid Rent $2,000
debit Rent Expense, $2,000; credit Prepaid Rent, $2,000---D
