Question

Item4 1 points Time Remaining 50 minutes 19 seconds00:50:19 Item 4 Time Remaining 50 minutes 19 seconds00:50:19 Chan Sports purchases one year of rent on November 1 for $12,000 ($1,000 per month), debiting Prepaid Rent. On December 31, Chan Sports would record the following year-end adjusting entry: Multiple Choice Rent Expense 10,000 Prepaid Rent 10,000 Rent Expense 2,000 Prepaid Rent 2,000 Rent Expense 12,000 Prepaid Rent 12,000 No entry is required on December 31 because full cash payment was made on November 1.3

Answer 1

Answer:

Rent Expense 2,000 Prepaid Rent 2,000

Explanation:

The adjusting entry is

rent expense Dr ($1,000 × 2 months) $2,000

     To prepaid rent $2,000

(being rent expense is recorded)

Here the rent expense is debited as it increased the expense and credited the prepaid rent as it decreased the assets

The same should be relevant