On September 1, 2024, Real Estate Professionals, Inc. paid $6,000 in advance for an eight−month rental space covering the period of September 1, 2024 through April 30, 2025. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year−end. The adjusting entry on December 31, 2025 would include a ________. A. debit of $3,000 to Rent Expense B. credit of $3,000 to Rent Expense C. credit of $6,000 to Prepaid Rent D. debit of $6,000 to Cash

On September 1, 2024, Real Estate Professionals, Inc. paid $6,000 in advance for an eight−month rental space covering the period of September 1, 2024 through April 30, 2025. The deferred expense was initially recorded as an asset. The company makes adjusting entries once a year at year−end. The adjusting entry on December 31, 2025 would include a ________. A. debit of $3,000 to Rent Expense B. credit of $3,000 to Rent Expense C. credit of $6,000 to Prepaid Rent D. debit of $6,000 to Cash

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 16RE

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